Seacoast Banking to expand market reach with Heartland Bancshares merger in $110m deal

Seacoast Banking Corporation of Florida, the parent company of Seacoast National Bank, has announced a definitive agreement to acquire Heartland Bancshares, the holding company of Heartland National Bank. The proposed acquisition, valued at approximately $110 million, will expand Seacoast’s footprint in Central Florida, adding a well-established, high-performing community bank to its portfolio.

With this move, Seacoast continues its long-term mergers and acquisitions strategy, reinforcing its presence in key Florida markets. Heartland Bancshares, headquartered in Sebring, Florida, operates four branches and reported $641 million in deposits and $161 million in loans as of December 31, 2024. The deal will further strengthen Seacoast’s market reach, adding a stable customer base and an institution known for its strong financial performance.

What Does This Acquisition Mean for Seacoast Bank?

Seacoast Banking Corporation, one of Florida’s largest community banks, has steadily expanded through acquisitions while maintaining strong organic growth. The company ended 2024 with $15.2 billion in assets and $12.2 billion in deposits, reinforcing its position as a dominant player in the Florida banking sector.

Seacoast’s Chairman and CEO, Charles M. Shaffer, emphasized that Heartland Bancshares aligns with Seacoast’s strategy of acquiring high-quality, low-risk banking franchises with strong customer relationships. He noted that Heartland’s commitment to exceptional service and financial stability makes it an ideal addition to the Seacoast brand.

The transaction is expected to be accretive to Seacoast’s earnings by 2026, despite a modest dilution in tangible book value. The bank anticipates recovering the book value impact within approximately 2.25 years, reflecting the long-term financial benefits of the acquisition.

What Will Heartland Bancshares Shareholders Receive?

Under the terms of the agreement, Heartland Bancshares shareholders will receive consideration in one of three forms. They may opt for an all-cash payout of $147.10 per share, accept 4.9164 shares of Seacoast common stock for each share of Heartland, or choose a combination of 50 percent cash and 50 percent stock, which equates to a total value of $141.96 per share. Seacoast has structured the deal to maintain a 50 percent cash and 50 percent stock ratio, ensuring a balanced transaction. Based on Seacoast’s closing stock price of $27.83 on February 26, 2025, the total consideration for the merger is estimated at $110 million.

When Will the Acquisition Be Finalized?

The transaction is expected to close in the third quarter of 2025, pending regulatory approvals, a Heartland Bancshares shareholder vote, and the fulfillment of customary closing conditions. Seacoast remains confident in a smooth transition, given its extensive experience in executing acquisitions within the Florida market.

How Does This Acquisition Align With Seacoast’s M&A Strategy?

Seacoast’s approach to mergers and acquisitions focuses on acquiring high-quality community banks that complement its existing footprint while minimizing integration risks. The Heartland Bancshares deal follows Seacoast’s established acquisition model, targeting institutions that offer geographic expansion into attractive Florida markets, low concentration risks to ensure financial stability, and established customer relationships that align with Seacoast’s community-focused banking model.

Seacoast’s M&A strategy prioritizes transactions that do not disrupt its organic growth initiatives, allowing the company to continue expanding its digital banking capabilities and customer service innovations alongside its acquisitions. The company has built a reputation for disciplined acquisitions, integrating new franchises seamlessly without straining its operational resources.

How Has Seacoast Performed Financially Ahead of the Acquisition?

Seacoast’s financial strength has positioned it well for this acquisition. The company reported strong earnings growth in 2024, driven by higher net interest margins and solid loan and deposit growth. For the fourth quarter of 2024, Seacoast reported net income of $34.1 million, an increase from $30.7 million in the previous quarter. Adjusted net income rose to $40.6 million, reflecting a continued upward trajectory. The net interest margin expanded by 22 basis points to 3.39 percent, indicating strong profitability.

For the full year 2024, Seacoast recorded $121.0 million in net income, up from $104.0 million in 2023. Pre-tax pre-provision earnings stood at $174.2 million, underscoring stable growth, while the return on average tangible shareholders’ equity reached 10.90 percent in the fourth quarter of 2024. Seacoast’s well-capitalized balance sheet and strong liquidity position provide a solid foundation for the integration of Heartland Bancshares.

What Will Change for Heartland Bancshares Customers?

Heartland National Bank customers will transition to the Seacoast Bank brand, gaining access to a broader suite of financial services, including expanded commercial and consumer banking solutions, wealth management and investment advisory services, enhanced mortgage and insurance offerings, and advanced digital and mobile banking tools.

Heartland’s CEO, James C. Clinard, expressed confidence in the merger, stating that Seacoast’s long-standing presence in Florida and commitment to customer service align well with Heartland’s values. He emphasized that the acquisition will provide customers with an enhanced banking experience supported by a larger, more resourceful institution. Seacoast has assured customers that the transition will be seamless, with minimal disruptions to existing accounts and services.

What’s Next for Seacoast Banking Corporation?

Seacoast’s latest acquisition underscores its continued expansion strategy, reinforcing its dominance in the Florida banking market. As the company integrates Heartland Bancshares, it is expected to focus on customer retention, digital transformation, and further market consolidation. Seacoast has demonstrated a disciplined approach to acquisitions, ensuring each deal enhances its long-term growth strategy without compromising financial stability. With this latest transaction, Seacoast is well-positioned to strengthen its market presence and drive shareholder value in the years ahead.