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Seacoast Bank Acquired

Enterprise Bank & Trust (Enterprise Financial Services Corp) recently entered into an agreement to purchase San Diego-based Seacoast Commerce Bank (Seacoast Commerce Banc Holdings) for $156 million in an all-stock transaction. Enterprise Bank is headquartered in Clayton, Missouri.

SBA Lending

The purchase and value were based in a large part on the bank’s Small Business Administration lending. Seacoast is the No. 9 SBA lender in the nation.

Enterprise (Nasdaq: EFSC) has $8.3 billion in assets coming into the purchase. Seacoast had approximately $1.3 billion in total assets as of June 30.

Seacoast operates four full-service banking offices in San Diego and one in Las Vegas. In addition, Seacoast has 20 loan production offices and six deposit production offices across the nation. In the last 10 years, Seacoast has funded more than $2 billion in SBA loans. As of June 30, approximately 52% or $569 million of Seacoast’s $1.1 billion loan portfolio was 100% guaranteed by the U.S. government.

Next Step

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“With Enterprise, we have taken the next step to move our organization forward with a partnership that we believe provides the infrastructure and balance sheet strength to continue our growth path. Both Enterprise and Seacoast have a shared set of values and commitment to service, said Richard Sanborn, Seacoast CEO.

Under the terms of the definitive agreement, upon consummation of the transaction, each holder of Seacoast common stock will receive 0.5061 shares of Enterprise common stock for each share held and cash in lieu of fractional shares. Existing Enterprise shareholders will own approximately 84% of the outstanding shares of the combined company, and Seacoast shareholders are expected to own approximately 16%.

Highly Specialized

“Much like Seacoast, Enterprise has expertise in a wide range of highly specialized lending needs and deposit accounts. Seacoast’s impressive specialty niches, including SBA, complement our well-established specialty banking areas and business lending focus – in addition to our strong community banking profile,” said Jim Lally, president and CEO of Enterprise.

“We seek out partnerships in markets that are not already saturated with banks that approach clients the way we do, and we believe we can bring something unique and in demand to the people and businesses of San Diego.”

Lally also said the SBA division will continue to be led by Seacoast’s David Bartram and Rick Visser. Sanborn will join the company’s board of directors.

The transaction was unanimously approved by each company’s boards and is expected to close in late 2020 or early 2021.

Enterprise Financial Services Corp operates 34 branch offices in St. Louis, Kansas City, Phoenix, and New Mexico. 

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