US regional lender Seacoast strikes $711 million deal for Villages Bancorporation

May 29 (Reuters) - U.S. regional lender Seacoast Banking Corporation of Florida SBCF.O said on Thursday it has agreed to buy smaller rival Villages Bancorporation (VBI) in a deal valued at $710.8 million.

A flurry of dealmaking among regional banks in the U.S. signals a renewed push for consolidation in the sector, as the industry grapples with stiff competition, higher funding costs and tighter regulatory scrutiny.

The trend, which gathered pace in 2024, slowed in recent months due to uncertainty around U.S. tariff policies at a time when the global economic environment remains volatile.

But analysts expect activity to pick up again as regulatory clarity improves and pressure on dealmaking begins to ease.

Seacoast, which has $15.7 billion in assets and $12.6 billion in deposits, said it expects the deal to be accretive by roughly 22% to its 2026 earnings per share.

Founded in 1992, VBI operates 19 branches with deposits of around $3.5 billion and loans of roughly $1.3 billion as of March 31.

Piper Sandler served as financial adviser to Seacoast on the transaction, which is expected to close in the fourth quarter of 2025, while Hovde Group advised VBI.