Seacoast to buy Drummond Banking in N. Florida

Seacoast Banking Corp. of Florida in Stuart has agreed to buy Drummond Banking Co. in Chiefland, Fla.

The $10.9 billion-asset Seacoast said in a press release Wednesday that it will pay $173.2 million for the parent of the $985 million-asset Drummond Community Bank. The deal is expected to close early in the fourth quarter. 

Drummond has 18 branches, $932 million of deposits and $543 million of loans.

Drummond “has an outstanding reputation for exceptional service and strong financial performance, with a deep commitment to the communities it serves for the last 32 years,” Charles Shaffer, Seacoast’s chairman and CEO, said in the release.

“We see great opportunity in complementing its strengths with Seacoast’s innovation and breadth of offerings to grow our presence and expand our position in the state,” Shaffer added. 

The transaction is expected to be 8.3% accretive to Seacoast’s 2023 earnings. It should take Seacoast less than two years to earn back any dilution to its tangible book value. 

Luther Drummond, Drummond’s chairman and president, and Gray Drummond, will become market executives at Seacoast. Scott Guthrie will become a market president. 

Seacoast agreed in March to buy the $1 billion-asset Apollo Bancshares in Miami for $168.3 million. The company bought Sabal Palm Bancorp in Sarasota, Fla., and Business Bank of Florida in Melbourne in January.

Piper Sandler and Alston & Bird advised Seacoast. Hovde Group and Smith Mackinnon advised Drummond.