Dive Brief:

• Stuart, Florida-based Seacoast Banking Corp. has agreed to buy in-state, Sebring-based Heartland Bancshares in an evenly split cash and stock deal valued at roughly $110 million, the bank said Thursday.
• The deal would expand Seacoast’s footprint in the central Florida market and is expected to be approximately 7% accretive to earnings per share in 2026, with modest dilution of tangible book value per share anticipated to be earned back in about 2.25 years, the company said.
• The transaction, expected to close in the third quarter of 2025, awaits regulatory and Heartland shareholders’ approvals.

Dive Insight:

Seacoast, a serial acquirer, has struck a deal with Heartland after a more than 2-year lull. Seacoast’s acquisition of Professional Bank was announced in August 2022 and consummated in January 2023.

Heartland is Seacoast’s 17th acquisition since 2014, and it highlights the bank’s ongoing strategy of combining organic growth with strategic acquisitions, according to a company spokesperson.

“Heartland has an outstanding reputation for exceptional service and strong financial performance, with a deep commitment to the communities it serves for over 25 years, and we look forward to continuing Heartland’s dedication to its customers, employees and shareholders,” Charles M. Shaffer, Seacoast’s chairman and CEO said in a statement Thursday.

“We see great opportunity in complementing Heartland’s strengths with Seacoast’s innovative products and breadth of offerings to grow our presence and expand our position in the state,” he said.

Following the acquisition, Heartland Bancshares will merge with and into Seacoast, with Seacoast as the surviving company, while Heartland National Bank, the subsidiary of Heartland Bancshares, will merge into Seacoast National Bank, according to a Securities and Exchange filing. 

Each share of Heartland common stock will be converted at closing into one of three options: $147.10 in cash, or 4.9164 shares of Seacoast common stock (with potential adjustments), or a 50-50 mix of cash and common stock.

The total value per Heartland share is $141.96. Shareholders can choose their preferred form of compensation (all stock, all cash, or the mixed option), though the overall transaction will maintain a 50% cash and 50% stock distribution. The merger value is based on Seacoast's closing stock price on Wednesday of $27.83 per share.

Bank M&A will see an uptick in 2025, according to experts. There were 11 deals worth $678.4 million that were announced in January, compared to 12 bank deals for a combined worth of $556.7 million in January last year, according to S&P Global Market Intelligence data. 

Heartland, a 26-year-old company, has four branches with approximately $641 million in deposits and $161 million in loans as of December last year. 

The $734 million-asset Seacoast’s expansion into Highlands County, where Heartland holds the No. 1 deposit market share, “aligns with Seacoast's strategy of disciplined in-market expansion, enhancing its funding profile and market positioning,” according to Piper Sandler analysts Stephen Scouten and Andrew Gorczyca.

“As [Seacoast] has been nearing what appears to be an organic growth inflection, we think these low-cost core deposits could ultimately be deployed into new loan growth,” the analysts wrote.

The Seacoast spokesperson said all four Heartland branches will remain open and Seacoast intends to integrate Heartland's employees into its workforce.

“Since its founding in 1999, Heartland has been committed to providing the very best banking experience for our customers. Now, in partnership with Seacoast, we are positioned to further accelerate this commitment, creating a best-in-class banking experience supported by a great team of professionals,” Heartland CEO James C. Clinard said in a statement. “ We are delighted to join forces with Seacoast Bank, which shares our values and has been serving Florida consumers and businesses for nearly a century.”