Investment Banking - Enterprise Financial Services Corp

Transactions | Banking

Client: Enterprise Financial Services Corp
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Financial Advisor

Enterprise Financial Services Corp to Acquire Seacoast Commerce Banc Holdings

  • Enterprise Financial Services Corp (Nasdaq: “EFSC”), headquartered in Clayton, Missouri, is the bank holding company for Enterprise Bank, which operates 34 banking offices in Arizona, Kansas, Missouri, and New Mexico. As of June 30, 2020 EFSC had total assets of $8.4 billion, $6.1 billion in gross loans, and $6.7 billion in deposits.
  • Seacoast Commerce Banc Holdings (OTCPK: “SCBH”), headquartered in San Diego, California, is the bank holding company for Seacoast Bank, a top 10 national SBA lender that operates five branch locations in California and Nevada, as well as 20 loan production offices across 11 states and six deposit production offices across five states. As of June 30, 2020, SCBH had total assets of $1.3 billion, $1.1 billion in loans (48.2% HFI, 51.8% HFS), and $1.0 billion in deposits. The Company has niche deposit specialties in Property Management, Homeowners Association, 1031 Exchange, Trust, and Escrow businesses.
  • SCBH shareholders will receive 0.5061 shares of EFSC common stock for each share of SCBH common stock owned.
  • Based on EFSC’s August 19, 2020 closing price of $31.22, the aggregate implied transaction value is approximately $156 million. This deal value equates to 151.2% of SCBH’s tangible book value per share as of June 30, 2020 and 10.3x trailing twelve-month EPS through June 30, 2020.
  • The transaction is expected to close in late 2020 or early 2021.
  • Boenning is serving as financial advisor and rendered a fairness opinion to Enterprise Financial Services Corp.

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