Seacoast National Bank’s parent Seacoast Banking Corporation of Florida (Seacoast) has reached an agreement with Professional Holding to buy its subsidiary Professional Bank in a deal valued at $488.6m.

As per the agreement, Professional shareholders will receive 0.8909 shares of Seacoast common stock for every Professional common stock held.

Changes in Seacoast’s stock price will alter the transaction value as the exchange ratio for the deal is fixed.

The proposed acquisition is aimed at expanding Seacoast’s footprint in the South Florida market’s tri-county including Miami-Dade, Broward, and Palm Beach.

Professional Bank operates nine branches across the tri-county region with approximately $2.4bn in deposits and a loan book worth $2bn as of 30 June 2022.

Seacoast noted that the Professional Bank’s acquisition is in line with its M&A strategy of expanding banking operations in one of Florida’s fastest-growing markets.

Seacoast Chairman and CEO Charles Shaffer said: “Professional Bank will be a strong addition to Seacoast’s breadth of offerings, accelerating our growth strategy and expanding our presence in the attractive South Florida market.

“With the combined scale, we will bring to market a larger balance sheet, a greater digital product set and the resources to become South Florida’s most competitive community bank.”

Professional Holding president and CEO Abel Iglesias said: “Professional Bank and Seacoast have closely aligned cultures with shared business values that are focused on maintaining disciplined underwriting and a strict credit culture.

“Importantly, when considering Seacoast’s pending transaction with Apollo, this acquisition will join together three customer-focused and service-oriented banks with a focus on getting business accomplished efficiently.”

In March this year, Seacoast brokered a deal to buy Apollo Bancshares (Apollo) for $168.3m.