Professional Holding Corp. filed SEC Form 8-K: Other Events

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report: December 9, 2022

 

Professional Holding Corp.

(Exact name of registrant as specified in its charter)

 

Florida		001-39215		46-5144312
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)
396 Alhambra Circle, Suite 255 Coral Gables, Florida,				33134
(Address of principal executive offices)				(Zip Code)

 

(786) 483-1757

(Registrant's telephone number, including area code)

 

Not applicable.

(Former name or former address, if changed since last report)

 

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

 

Title of Class		Trading Symbol(s)		Name of Exchange on which registered
Class A Common Stock, par value $0.01 per share		PFHD		NASDAQ Stock Market, LLC

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 8.01

Other Events.

 

As previously reported, on August 7, 2022, Professional Holding Corp. (the “Company,” “we,” or “our”), the parent company of Professional Bank, entered into an Agreement and Plan of Merger (the “Agreement”) providing for the merger (the “Merger”) of the Company with and into Seacoast Banking Corporation of Florida (“Seacoast”), the parent company of Seacoast National Bank (“SNB”), and the merger of Professional Bank with and into SNB (together with the Merger, the “Mergers”). In connection with the Mergers, the Company filed with the Securities and Exchange Commission (the “SEC”) a definitive proxy statement, dated November 14, 2022 (the “Definitive Proxy Statement”), and commenced mailing the Definitive Proxy Statement to shareholders of the Company on or about November 14, 2022.

 

Since October 24, 2022, the Company has received demand letters from certain purported shareholders of the Company (the “Demand Letters”). The Demand Letters allege that the Definitive Proxy Statement (or the related preliminary proxy statement, filed on October 4, 2022) contains certain disclosure deficiencies.

 

The Company has not responded to the Demand Letters and believes they are without merit. However, in order to moot the unmeritorious disclosure claims, alleviate the costs, risks and uncertainties inherent in litigation, and provide additional information to its shareholders, the Company is voluntarily supplementing the Definitive Proxy Statement with the supplemental disclosures described in the following section entitled “Supplemental Disclosures” in this Current Report on Form 8-K. Nothing in this Current Report on Form 8-K is an admission, or shall be deemed an admission, of the legal necessity or materiality under applicable laws of any of the disclosures set forth herein. To the contrary, the Company denies all allegations in the Demand Letters that additional disclosure was or is required.

 

This filing will not affect the timing of the special meeting of the Company’s shareholders scheduled for December 15, 2022, at 1:00 p.m., Eastern Time. The Company’s board of directors continues to recommend that the Company’s shareholders vote “FOR” the approval of the merger proposal.

 

Supplemental Disclosures

 

The following are additional disclosures that supplement the disclosures contained in, and that should be read in conjunction with, the Definitive Proxy Statement, which should be read in its entirety. To the extent that information in this supplemental disclosure differs from, or updates information contained in, the Definitive Proxy Statement, the information in this supplemental disclosure shall supersede or supplement the information in the Definitive Proxy Statement. Capitalized terms used herein, but not otherwise defined, shall have the meanings ascribed to such terms in the Definitive Proxy Statement.

 

The Definitive Proxy Statement is hereby revised to reflect the following:

 

1.

The disclosure under the heading “Proposal 1: The Merger – Background of the Merger” is supplemented by adding the following underlined text to the third full paragraph on page 39 of the Definitive Proxy:

 

The parties had no further contact until April 12, 2022, when Mr. Martens advised Mr. Shaffer that on April 11, 2022, Professional had received an unsolicited non-binding letter of intent from a third party seeking to purchase Professional. Prior to the receipt of the letter of intent, neither the Professional board of directors nor its management had intended to solicit a sale or merger of Professional. Mr. Martens and Mr. Shaffer informally discussed Seacoast’s interest in a potential merger/acquisition transaction with Professional. At approximately the same time, Professional’s investment bankers, Stephens, informally contacted Piper Sandler, investment bankers to Seacoast, to discuss a potential transaction. On April 13, 2022, Seacoast formally engaged Piper Sandler to act as its exclusive financial advisor in connection with a possible transaction. Following further discussions, on April 15, 2022, Professional and Seacoast entered into a confidentiality agreement containing customary terms, including a waivable standstill provision, in connection with a possible transaction.

 

2.

The disclosure under the heading “Proposal 1: The Merger – Background of the Merger” is supplemented by adding the following underlined text to the sixth full paragraph on page 39 of the Definitive Proxy:

 

Following its engagement, Stephens contacted 11 potential parties, including Seacoast and the initial third-party offeror, with regard to a possible combination with Professional. Three of those parties entered into confidentiality agreements containing customary terms, including waivable standstill provisions, with Professional, following which they were given access to a virtual data room. The parties were further advised that the deadline for the submission of a bid was June 1, 2022. Three potential buyers submitted proposals to purchase Professional, including Seacoast.

 

 

3.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Seacoast’s Financial Advisor — Comparable Company Analyses” is amended by deleting the table of company names at the bottom of page 48 (the Seacoast Peer Group) of the Definitive Proxy Statement and replacing it with the following:

 

Financials as of June 30, 2022								Balance Sheet												Capital Position																LTM Profitability																Valuation as of August 3, 2022
																												Total				Bank CRE /																				Price /
													Loans/				NPAs /				TCE /				Lev.				RBC				Total																Effic.								LTM				2022	E			2023	E			Div.				Market
									Assets				Deps.				Assets				TA				Ratio				Ratio				RBC				ROAA				ROAE				NIM				Ratio				TBV				EPS				EPS				EPS				Yield				Cap
Company		City, State			Ticker				($M)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(x)				(x)				(x)				(%)				($M)
Atlantic Union Bkshs Corp.		Richmond, VA			AUB				19,662				84.7				0.21				6.78				9.26				13.85				268.5				1.14				8.66				3.12				53.7				199				11.8				11.6				9.8				3.6				2,522
Trustmark Corp.		Jackson, MS			TRMK				16,952				74.2				0.39¹				7.23				8.80				13.26				235.6				0.64				6.47				2.64				75.8				167				18.3				14.1				13.0				2.8				2,013
TowneBank		Portsmouth, VA			TOWN				16,864				74.5				0.10				8.26				9.19				16.76				227.6				1.16				9.92				2.77				63.2				158				11.7				11.2				10.3				3.2				2,084
WesBanco Inc.		Wheeling, WV			WSBC				16,800				75.2				0.21¹				7.52				9.51				15.40				275.8				1.09				6.96				3.01				58.9				172				12.0				11.5				10.8				4.0				2,020
Renasant Corp.		Tupelo, MS			RNST				16,618				77.0				0.46¹				7.34				9.16				15.34				256.3				0.91				6.77				2.90				65.9				163				12.5				11.6				10.7				2.7				1,876
ServisFirst Bancshares Inc.		Birmingham, AL			SFBS				14,494				90.2				0.08				8.27				8.19				11.18				319.3				1.52				19.70				2.93				32.2				392				20.9				18.5				17.0				1.1				4,701
FB Financial Corp.		Nashville, TN			FBK				12,194				81.8				0.39¹				8.90				10.20				13.60				270.8				1.21				10.68				3.24				63.2				187				13.6				13.9				11.5				1.2				1,989
First Bancorp		Southern Pines, NC			FBNC				10,566				66.7				0.39				7.27¹				9.95				14.91				283.9				1.10				9.89				3.14				50.2				190				11.2				9.0				8.6				2.5				1,295
Live Oak Bancshares Inc.		Wilmington, NC			LOB				9,121				71.9				1.60¹				6.98¹				9.44				12.49¹				166.0				2.32				26.28				3.98				63.5				218				9.0				17.7				15.3				0.3				1,715
Amerant Bancorp Inc.		Coral Gables, FL			AMTB				8,151				92.3				0.39				8.51				10.25				13.21				282.3				1.35				13.06				3.14				76.0				130				9.2				12.2				10.4				1.4				897
City Holding Co.		Charleston, WV			CHCO				6,243				69.3¹				0.40				7.76				9.42				16.26				203.7				1.50				13.53				2.92				50.1				272				14.7				13.8				13.4				2.8				1,292
The First Bancshares		Hattiesburg, MS			FBMS				6,037				58.9				0.50¹				6.43				10.43¹				16.98¹				165.1				1.10				9.94				3.06				56.6				160				9.5				9.3				8.3				2.5				604

 

¹⁾ Reflects bank level data

²⁾ SBCF data does not include pending acquisitions

 

Note:  Peer group includes publicly traded banks headquartered in the southeast between $5 billion and $20 billion in total assets; Price / Estimated EPS multiples based on mean consensus estimates per S&P Global Market Intelligence for each respective year  

 

 

4.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Seacoast’s Financial Advisor — Comparable Company Analyses” is amended by deleting the table of company names at the bottom of page 49 (Professional Peer Group) of the Definitive Proxy Statement and replacing it with the following:

 

Financials as of June 30, 2022								Balance Sheet												Capital Position																LTM Profitability																Valuation as of August 3, 2022
																												Total				Bank CRE /																				Price /
													Loans/				NPAs /				TCE /				Lev.				RBC				Total																Effic.								LTM				2022	E			2023	E			Div.				Market
									Assets				Deps.				Assets				TA				Ratio				Ratio				RBC				ROAA				ROAE				NIM				Ratio				TBV				EPS				EPS				EPS				Yield				Cap
Company		City, State			Ticker				($M)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(x)				(x)				(x)				(%)				($M)
Burke & Herbert Bank & Trust		Alexandria, VA			BHRB				3,586				59.1				0.27¹				8.12				10.94¹				19.16¹				269.5				1.05				10.32				2.92				68.3				131				10.2				--				--				4.1				380
HomeTrust Bancshares Inc.		Asheville, NC			HTBI				3,549				89.3				0.46¹				10.31				10.11¹				11.02¹				291.9				1.01				9.00				3.42				69.9				103				10.8				10.3				10.3				1.5				372
FineMark Holdings Inc.		Fort Myers, FL			FNBT				3,528				72.4				0.03¹				7.56				9.16				20.03				115.2				0.84				9.65				2.20				65.9				128				12.3				--				--				--				343
Southern First Bancshares Inc		Greenville, SC			SFST				3,288				99.1				0.20				8.60				9.71				13.97				235.6				1.41				15.17				3.36				55.7				124				8.6				11.0				9.9				--				351
First Community Bankshares Inc		Bluefield, VA			FCBC				3,258				82.2				0.82				9.08				8.40¹				13.18¹				232.9				1.37				10.26				3.60				57.8				185				12.3				11.6				11.3				3.6				525
Primis Financial Corp.		McLean, VA			FRST				3,237				98.0				0.65				9.27				10.21				17.58				208.7				0.63				5.15				3.03				69.2				117				16.0				15.1				12.1				2.9				339
American National Bankshares		Danville, VA			AMNB				3,234				71.8				0.17¹				7.58				9.42				14.06				294.4				1.17				11.14				2.85				54.9				157				9.8				10.8				10.6				3.2				375
MetroCity Bankshares Inc.		Doraville, GA			MCBS				3,168				115.6				1.07				9.96				10.31				17.60				36.6				2.40				24.30				4.27				34.4				165				7.5				7.4				7.9				2.9				521
CapStar Finl Hldgs Inc		Nashville, TN			CSTR				3,097				85.0				0.08				10.19				11.10				14.79				274.0				1.47				12.44				3.15				54.6				149				10.1				11.0				10.2				1.9				462
MVB Financial Corp		Fairmont, WV			MVBF				2,984				84.7				0.84¹				8.27				11.63¹				--				262.1				0.95				10.23				3.45				89.5				161				15.2				22.0				9.9				2.1				395
Blue Ridge Bankshares Inc.		Charlottesville, VA			BRBS				2,800				88.4				0.49¹				8.23				10.02¹				12.13¹				281.2				1.43				14.01				3.62				62.5				123				7.2				--				--				3.3				279
Colony Bankcorp Inc.		Fitzgerald, GA			CBAN				2,728				62.3				0.22¹				6.52				10.74				16.55				309.6				0.72				8.24				3.20				76.4				146				11.3				10.2				8.7				3.0				253
River Financial Corp.²		Prattville, AL			RVRF				2,501				63.6				0.11¹				4.13				8.36¹				13.44¹				177.6				1.15				16.48				3.19				52.1				209				7.8				--				--				1.4				213
C&F Financial Corp.		Toano, VA			CFFI				2,334				75.8				0.15¹				7.31				9.50				15.50				221.9				1.17				13.05				4.10				69.2				101				6.6				--				--				3.3				169
John Marshall Bancorp Inc.		Reston, VA			JMSB				2,316				82.8				0.02				8.96				10.97¹				15.12¹				335.6				1.38				14.48				3.22				45.4				182				12.7				--				--				--				376
FVCBankcorp Inc.		Fairfax, VA			FVCB				2,306				86.4				0.16¹				8.25				10.72¹				--				385.1				1.18				11.82				3.14				50.2				141				11.6				11.0				11.1				--				267
First Citizens Bancshares Inc.²		Dyersburg, TN			FIZN				2,290				60.9				0.52¹				7.29				9.38¹				--				278.3				1.31				12.45				3.33¹				59.7				114				9.0				--				--				2.2				255

 

¹⁾ Reflects bank level data as of June 30, 2022

²⁾ Reflects holding company data as of March 31, 2022

 

Note:  Peer group includes publicly traded banks headquartered in the southeast between $2.25 billion and $3.75 billion in total assets; Price / Estimated EPS multiples based on mean consensus estimates per S&P Global Market Intelligence for each respective year

 

 

5.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Seacoast’s Financial Advisor —Analysis of Precedent Transactions” is amended by deleting the table of Acquiror and Target names at the top of page 51 (the Regional Precedent Transactions) of the Definitive Proxy Statement and replacing it with the following:

 

																Transaction Information																								Seller Information
																				Price/												Core				1-Day
																Deal				LTM				Est.								Dep.				Market				Total				TCE/				LTM				NPAs/
												Announce.				Value				EPS				EPS				TBV				Prem.				Prem.				Assets				TA				ROAA				Assets
Acquiror		St				Target		St				Date				($M)				(x)				(x)				(%)				(%)				(%)				($M)				(%)				(%)				(%)
The First Bancshares			MS			Heritage Southeast Bancorp.			GA				07/27/22				207.5				15.5				–				179				6.9				32.0				1,697				7.0				0.81				0.22
HomeTrust Bancshares Inc.			NC			Quantum Capital Corp.			GA				07/25/22				67.6				4.2				–				158				4.5				–				660				10.2				3.15				0.00
First Bancorp			NC			GrandSouth Bancorporation			SC				06/21/22				181.1				10.7				10.8				189				8.5				14.3				1,253				7.5				1.40				0.26
F.N.B. Corp.			PA			UB Bancorp			NC				06/01/22				117.7				9.2				–				154				4.4				10.2				1,170				6.6				1.14				0.04
DFCU Financial			MI			First Citrus Bancorp. Inc.			FL				05/12/22				105.0				15.3				–				211				9.3				63.3				689				8.0				1.01				0.00
United Community Banks Inc.			GA			Progress Financial Corp.			AL				05/04/22				268.4				13.2				–				165				7.9				–				1,860				8.3				1.19				0.19
Seacoast Bnkg Corp. of FL			FL			Drummond Banking Co.			FL				05/04/22				173.2				13.8				–				191				9.5				–				1,025				8.3				1.37				0.21
The First Bancshares			MS			Beach Bancorp Inc.			FL				04/26/22				116.7				NM				–				154				9.6				–				620				13.1				0.40				1.77
Seacoast Bnkg Corp. of FL			FL			Apollo Bancshares/Apollo Bank			FL				03/29/22				168.3				20.0				–				195				9.7				–				1,044				9.4				0.91				0.37
United Community Banks Inc.			GA			Reliant Bancorp Inc.			TN				07/14/21				518.6				10.4				11.1				181				12.1				11.0				3,098				9.3				1.62				0.28
Lake Michigan CU			MI			Pilot Bancshares Inc.			FL				06/16/21				99.9				12.3				–				187				9.8				19.1				656				8.1				1.36				0.30
Simmons First National Corp.			AR			Triumph Bancshares Inc.			TN				06/07/21				132.1				17.2				–				153				8.9				–				894				9.7				0.98				0.92
Simmons First National Corp.			AR			Landmark Community Bank			TN				06/07/21				146.4				14.0				–				143				8.0				–				1,007				10.1				1.08				0.66
United Bankshares Inc.			WV			Community Bankers Trust Corp			VA				06/03/21				305.3				14.2				13.5				168				11.7				41.9				1,699				10.2				1.28				0.71
First Bancorp			NC			Select Bancorp Inc.			NC				06/01/21				314.3				23.8				14.4				185				11.0				28.6				1,832				9.4				0.79				0.56
United Community Banks Inc.			GA			Aquesta Financial Holdings			NC				05/27/21				130.6				18.1				–				217				11.8				66.5				752				6.2				1.01				0.76
Peoples Bancorp Inc.			OH			Premier Financial Bancorp Inc.			WV				03/29/21				292.4				12.9				–				139				4.9				9.5				1,946				11.0				1.20				1.16
Seacoast Banking Corp. of FL			FL			Legacy Bank of Florida			FL				03/23/21				106.6				18.1				–				187				16.2				–				533				10.7				1.15				0.32
BancorpSouth Bank			MS			FNS Bancshares Inc.			AL				01/13/21				108.4				19.4				–				154				6.5				35.1				786				9.1				0.77				0.64

 

 ¹⁾ Reflects bank level data

 

Note: Includes bank and thrift transactions announced since January 1, 2021 with targets headquartered in the southeast with total assets between $500M and $5.0B and disclosed deal values; excludes transactions with targets headquartered outside of the continental U.S. and transactions with non-bank buyers

 

 

6.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Seacoast’s Financial Advisor — Net Present Value Analyses” is supplemented by adding the following underlined text to the paragraph spanning pages 51 and 52 of the Definitive Proxy Statement:

 

Piper Sandler performed an analysis that estimated the net present value of a share of Seacoast common stock assuming Seacoast performed in accordance with publicly available mean analyst balance sheet and earnings per share estimates for Seacoast for the years ending December 31, 2022 and December 31, 2023 with a long-term annual net income and balance sheet growth rate for the years ending December 31, 2024 through December 31, 2026, as provided by the senior management of Seacoast. To approximate the terminal value of a share of Seacoast common stock at December 31, 2026, Piper Sandler applied price to 2026 earnings multiples ranging from 10.0x to 17.5x and multiples of 2026 tangible book value ranging from 150% to 225%. Piper Sandler selected these price to earnings and tangible book value multiples based on Piper Sandler’s review of, among other matters, the trading multiples of selected companies that Piper Sandler deemed to be comparable to Seacoast. The terminal values were then discounted to present values using different discount rates ranging from 8.0% to 12.0%, which were chosen to reflect different assumptions regarding required rates of return of holders or prospective buyers of Seacoast common stock. As illustrated in the following tables, the analysis indicated an imputed range of values per share of Seacoast common stock of $19.50 to $38.27 when applying multiples of earnings and $24.30 to $41.74 when applying multiples of tangible book value.

 

7.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Seacoast’s Financial Advisor — Net Present Value Analyses” is supplemented by adding the following underlined text to the last full paragraph on page 52 of the Definitive Proxy Statement:

 

Piper Sandler also performed an analysis that estimated the net present value per share of Professional common stock, assuming Professional performed in accordance with certain financial projection assumptions for Professional for the years ending December 31, 2022 through December 31, 2026, as provided by the senior management of Seacoast. To approximate the terminal value of a share of Professional common stock at December 31, 2026, Piper Sandler applied price to 2026 earnings multiples ranging from 8.0x to 13.0x and multiples of 2026 tangible book value ranging from 125% to 175%. Piper Sandler selected these price to earnings and tangible book value multiples based on Piper Sandler’s review of, among other matters, the trading multiples of selected companies that Piper Sandler deemed to be comparable to Professional. The terminal values were then discounted to present values using different discount rates ranging from 9.0% to 13.0%, which were chosen to reflect different assumptions regarding required rates of return of holders or prospective buyers of Professional common stock. As illustrated in the following tables, the analysis indicated an imputed range of values per share of Professional common stock of $11.71 to $22.58 when applying multiples of earnings and $18.31 to $30.41 when applying multiples of tangible book value.

 

 

8.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Professional’s Financial Advisor —Relevant Public Companies Analysis” is amended by deleting the bulleted list of company names spanning pages 60 and 61 of the Definitive Proxy Statement and replacing it with the following:

 

											Balance Sheet																																																Asset Quality								Profitability / Earnings (MRQ)
															LTM Loan																				Tier 1								NIB				TBV + Dividends																ALLL /				Cost of				Net				Fee
											Total				Growth				Securities				TCE /				Loans /				CRE/				Leverage				TRBC				Dep. /				1-Year				3-Year				5-Year				NPAs/				Loans				Total				Interest				Income /
											Assets				(ex. PPP)				/ Assets				TA				Deposits				TRBC				Ratio				Ratio				Dep.				CAGR				CAGR				CAGR				Assets(1)				(ex. PPP)				Deposits				Margin				Revenue
			Company		Ticker				City, State		($M)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)
1			South Plains Finl Inc.			SPFI			Lubbock, TX		$	3,975				12.3				24.0				8.6				75.3				217				10.1				13.9				34.9				(2.3	)			7.7				NM				0.18				1.52				0.27				4.01				33.7
2			Summit Financial Group Inc.			SMMF			Moorefield, WV			3,763				19.2				13.4				6.9				100.1				310				10.5				12.4				20.2				9.6				9.3				11.8				0.43				1.18				0.35				3.65				13.5
3			West Bancorp.			WTBA			West Des Moines, IA			3,475				15.3				21.5				6.2				90.5				397				11.2				13.6				24.3				(6.2	)			8.4				9.8				0.01				0.99				0.42				2.92				8.6
4			Peoples Financial Services			PFIS			Scranton, PA			3,422				19.4				21.3				7.4				88.1				317				9.8				14.0				25.7				(0.1	)			8.5				9.4				0.09				1.16				0.22				3.05				14.1
5			Home Bancorp Inc.			HBCP			Lafayette, LA			3,362				22.9				15.7				7.4				76.2				284				9.3				13.7				32.1				(6.1	)			6.3				6.7				0.56				1.18				0.15				3.75				11.2
6			Southern First Bancshares Inc			SFST			Greenville, SC			3,288				20.4				3.1				8.6				99.1				236				10.0				13.5				27.8				11.1				12.1				12.6				0.09				1.19				0.26				3.34				9.7
7			Guaranty Bancshares Inc.			GNTY			Addison, TX			3,281				14.0				29.4				7.6				76.9				266				9.7				14.9				39.8				3.2				11.2				10.0				0.30				1.36				0.23				3.60				18.5
8			Primis Financial Corp.			FRST			McLean, VA			3,237				15.4				8.8				9.3				98.0				209				12.4				15.7				24.3				(0.4	)			7.3				8.9				0.57				1.15				0.35				3.32				9.7
9			American National Bankshares			AMNB			Danville, VA			3,234				10.1				20.9				7.6				71.8				294				9.2				13.7				37.0				(0.8	)			9.3				8.1				0.05				0.91				0.09				2.76				18.4
10			Red River Bancshares Inc.			RRBI			Alexandria, LA			3,121				16.2				26.2				8.1				64.6				164				9.4				16.3				41.5				(11.5	)			3.4				NM				0.03				1.05				0.19				2.72				19.3
11			CapStar Finl Hldgs Inc			CSTR			Nashville, TN			3,097				13.8				23.2				10.2				85.0				274				11.7				14.3				27.3				3.0				7.8				6.6				0.08				0.93				0.23				3.39				19.4
12			Civista Bancshares Inc.			CIVB			Sandusky, OH			3,039				10.1				25.0				7.5				84.1				301				10.7				16.0				34.3				(10.1	)			4.1				5.7				0.12				1.33				0.11				3.46				18.7
13			MVB Financial Corp			MVBF			Fairmont, WV			2,984				25.0				22.3				8.3				84.7				262				11.6				-				51.4				1.2				13.1				13.6				0.69				1.03				0.11				4.09				30.9
14			Bank First Corporation			BFC			Manitowoc, WI			2,961				12.7				14.5				8.8				91.8				244				8.9				11.7				31.7				8.1				13.0				13.7				0.15				0.95				0.27				3.21				17.6
15			First Guaranty Bancshares Inc.			FGBI			Hammond, LA			2,959				17.7				15.3				6.0				86.3				296				9.4				11.7				21.1				12.0				8.2				9.1				0.43				1.03				0.83				3.71				8.8
16			Orrstown Financial Services			ORRF			Shippensburg, PA			2,824				20.1				18.4				7.7				81.4				282				9.5				13.3				23.0				(2.8	)			9.2				6.5				0.19				1.17				0.11				3.68				23.0
17			First Business Finl. Svcs. Inc			FBIZ			Madison, WI			2,777				13.7				8.8				9.6				122.5				383				10.2				11.3				29.1				12.4				12.2				11.0				0.21				1.06				0.22				3.71				22.5
18			The First Bancorp			FNLC			Damariscotta, ME			2,630				17.2				26.1				7.6				79.4				224				8.8				13.6				14.4				3.5				10.4				11.8				0.19				0.91				0.44				3.13				17.9
19			First Bank			FRBA			Hamilton, NJ			2,568				16.4				6.0				10.0				102.5				393				10.2				12.5				27.7				10.6				11.1				9.6				0.47				1.13				0.23				3.75				5.2
20			Chemung Financial Corp.			CHMG			Elmira, NY			2,450				11.3				28.8				6.3				74.1				362				8.1				12.9				32.3				(13.4	)			3.8				7.1				0.31				1.08				0.14				2.96				23.8
21			Bankwell Financial Group Inc.			BWFG			New Canaan, CT			2,436				20.5				4.8				9.2				100.9				427				10.2				11.8				18.3				23.8				11.3				9.9				0.63				0.77				0.37				4.01				4.6
22			Orange County Bancorp Inc.			OBT			Middletown, NY			2,392				19.2				23.6				5.8				66.8				403				8.1				13.2				35.9				(14.6	)			4.1				5.2				0.79				1.62				0.13				3.13				14.5
23			ChoiceOne Financial Services			COFS			Sparta, MI			2,360				11.9				42.9				4.5				52.3				166				8.2				12.7				27.1				(30.8	)			(4.9	)			1.6				0.05				0.66				0.19				2.94				20.4
24			Central Valley Community Bncp			CVCY			Fresno, CA			2,346				12.5				43.9				4.7				53.9				257				9.1				14.9				44.2				(38.7	)			(6.5	)			0.4				0.01				0.87				0.04				3.47				8.1
25			PCB Bancorp			PCB			Los Angeles, CA			2,345				18.8				6.4				14.0				91.8				230				15.1				18.9				49.5				15.7				11.3				14.0				0.09				1.14				0.22				4.00				14.6
26			FVCBankcorp Inc.			FVCB			Fairfax, VA			2,306				17.0				13.6				8.3				86.4				385				10.7				-				28.1				(3.7	)			5.1				10.3				0.15				0.90				0.41				3.29				3.7
27			Capital Bancorp Inc.			CBNK			Rockville, MD			2,155				12.5				10.7				9.6				86.0				274				9.1				14.3				44.6				16.6				18.7				17.1				0.33				1.63				0.21				7.04				19.1
28			Unity Bancorp Inc.			UNTY			Clinton, NJ			2,117				11.8				7.0				10.3				104.2				258				10.7				-				30.1				20.3				17.7				16.3				0.36				1.28				0.23				4.38				13.0

 

Source: S&P Global Market Intelligence, FactSet.

Note: Dollars in millions. LTM=Last Twelve Months.

(1)

NPAs/Assets excludes restructured loans from nonperforming assets.

 

 

											Profitability / Earnings (MRQ)																																Ownership Data												Market Data
															LTM				LTM												Est.				Est.				Est.																								Price/																								LTM
											Effic.				Core				Core				Core				Core				2022				2023				2022				Inst.				Insider				Retail				Market				LTM				Tang.				LTM				NTM				2022				2023				Div.				Div.
											Ratio				ROAA				ROATCE				ROAA				ROATCE				ROA				ROA				ROTE				Owner.				Owner.				Owner.				Cap				ADTV(1)				BV				EPS				EPS				EPS				EPS				Yield				Payout
			Company		Ticker				City, State		(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				(%)				($M)				($M)				(x)				(x)				(x)				(x)				(x)				(%)				(%)
1			South Plains Finl Inc.			SPFI			Lubbock, TX			63.3				1.58				16.7				1.64				18.5				1.32				1.14				13.5				24				41				35			$	466				0.6				1.37				8.2				10.5				9.7				10.1				1.8				12.2
2			Summit Financial Group Inc.			SMMF			Moorefield, WV			47.5				1.42				20.3				1.42				20.6				1.43				1.35				17.8				30				19				51				376				0.4				1.47				8.0				6.8				7.1				7.1				2.4				19.5
3			West Bancorp.			WTBA			West Des Moines, IA			42.0				1.47				20.5				1.45				22.7				1.35				1.04				20.7				41				11				47				426				0.7				1.97				8.5				10.5				8.9				11.1				3.9				32.7
4			Peoples Financial Services			PFIS			Scranton, PA			54.9				1.08				13.3				1.13				14.7				1.10				1.17				14.5				30				4				66				378				0.6				1.52				8.5				9.3				10.0				9.0				3.0				25.0
5			Home Bancorp Inc.			HBCP			Lafayette, LA			59.9				1.32				14.5				1.22				16.5				1.11				1.14				14.1				40				14				46				324				0.6				1.35				8.5				7.9				9.0				7.8				2.4				20.1
6			Southern First Bancshares Inc			SFST			Greenville, SC			57.3				1.42				15.3				0.96				10.7				1.03				1.06				10.7				79				6				15				351				1.0				1.24				8.6				10.4				10.0				8.9				0.0				0.0
7			Guaranty Bancshares Inc.			GNTY			Addison, TX			58.9				1.30				15.4				1.36				17.2				1.32				1.23				15.9				25				30				45				437				0.6				1.76				11.2				10.8				10.6				10.8				2.4				25.6
8			Primis Financial Corp.			FRST			McLean, VA			69.6				0.75				8.3				0.79				8.4				0.65				0.78				7.4				65				15				20				339				0.8				1.17				16.0				12.9				15.1				12.1				2.9				46.5
9			American National Bankshares			AMNB			Danville, VA			57.3				1.32				16.4				1.12				14.1				1.06				1.07				13.9				40				4				56				375				0.7				1.57				9.8				10.8				10.8				10.6				3.2				30.9
10			Red River Bancshares Inc.			RRBI			Alexandria, LA			55.2				1.09				11.8				1.17				14.6				1.12				1.17				13.5				19				34				47				389				0.4				1.54				11.8				10.5				10.9				10.5				0.5				6.1
11			CapStar Finl Hldgs Inc			CSTR			Nashville, TN			54.9				1.49				14.5				1.32				13.1				1.35				1.38				12.8				44				16				40				462				1.0				1.49				10.1				10.6				11.0				10.2				1.9				13.5
12			Civista Bancshares Inc.			CIVB			Sandusky, OH			66.4				1.23				14.6				1.01				13.5				1.12				1.25				15.9				55				6				39				335				0.9				1.42				8.7				7.9				8.9				7.6				2.6				22.7
13			MVB Financial Corp			MVBF			Fairmont, WV			76.3				0.33				3.6				0.03				0.3				0.64				1.28				6.3				46				12				43				395				1.1				1.61				15.2				13.9				22.0				9.9				2.1				29.4
14			Bank First Corporation			BFC			Manitowoc, WI			42.6				1.46				17.2				1.50				18.4				1.46				1.56				17.3				27				16				57				581				0.7				2.28				13.4				11.9				12.6				11.6				1.3				19.9
15			First Guaranty Bancshares Inc.			FGBI			Hammond, LA			61.2				1.13				19.0				1.12				19.1				1.05				1.12				16.2				9				45				46				259				0.4				1.47				8.9				8.5				8.9				8.1				2.6				23.0
16			Orrstown Financial Services			ORRF			Shippensburg, PA			58.4				1.12				13.4				1.27				16.2				1.19				1.08				17.4				44				5				50				278				0.6				1.29				9.2				8.3				8.3				8.6				2.9				26.8
17			First Business Finl. Svcs. Inc			FBIZ			Madison, WI			63.7				1.42				16.2				1.65				15.7				1.32				1.14				15.1				62				6				31				282				0.8				1.28				7.6				8.2				7.6				8.1				2.4				17.2
18			The First Bancorp			FNLC			Damariscotta, ME			43.5				1.51				18.2				1.55				19.9				-				-				-				39				15				46				334				0.5				1.70				8.7				-				-				-				4.5				37.4
19			First Bank			FRBA			Hamilton, NJ			46.7				1.34				13.5				1.35				13.6				1.44				1.43				13.5				37				8				55				294				0.4				1.15				8.8				7.4				8.0				7.6				1.6				12.2
20			Chemung Financial Corp.			CHMG			Elmira, NY			61.6				1.13				15.5				1.34				21.0				1.13				1.06				17.0				35				27				38				221				0.3				1.45				7.9				8.6				8.0				8.2				2.6				20.7
21			Bankwell Financial Group Inc.			BWFG			New Canaan, CT			43.7				1.49				17.5				1.95				22.3				1.47				1.10				15.3				31				28				40				243				0.9				1.12				7.2				8.2				6.9				8.7				2.5				17.1
22			Orange County Bancorp Inc.			OBT			Middletown, NY			60.5				0.85				11.1				0.37				5.8				0.85				1.12				13.1				39				17				44				185				0.3				1.33				9.8				7.5				9.5				6.9				2.4				23.8
23			ChoiceOne Financial Services			COFS			Sparta, MI			62.7				1.03				16.5				1.10				22.8				-				-				-				11				12				77				158				0.1				1.53				7.3				-				-				-				4.7				34.5
24			Central Valley Community Bncp			CVCY			Fresno, CA			54.2				1.10				15.5				1.22				24.0				1.11				1.18				22.5				49				16				35				195				0.6				1.79				7.6				6.9				7.2				6.8				2.9				22.0
25			PCB Bancorp			PCB			Los Angeles, CA			49.0				1.92				16.9				1.65				15.8				1.77				1.70				14.1				39				20				41				294				1.4				1.13				7.3				7.1				7.4				6.9				3.0				20.0
26			FVCBankcorp Inc.			FVCB			Fairfax, VA			46.7				1.25				13.1				1.22				13.6				1.25				1.24				11.9				32				21				47				267				0.7				1.41				11.6				11.2				11.0				11.1				0.0				0.0
27			Capital Bancorp Inc.			CBNK			Rockville, MD			62.0				2.08				21.7				2.23				22.1				1.98				2.02				17.5				33				38				28				339				0.5				1.63				8.0				8.2				8.3				7.6				1.0				6.6
28			Unity Bancorp Inc.			UNTY			Clinton, NJ			42.8				1.91				19.0				1.90				18.4				1.89				1.81				16.1				47				30				23				292				0.8				1.37				7.8				7.3				7.6				7.4				1.6				11.2

 

Source: S&P Global Market Intelligence, FactSet.

Note: Dollars in millions. LTM=Last Twelve Months.

(1)

LTM ADTV = Last twelve months average daily trading volume.

 

 

9.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Professional’s Financial Advisor — Relevant Nationwide Transactions Analysis — Professional Holding Corp” is amended by deleting the bulleted list of company names spanning pages 63 and 64 of the Definitive Proxy Statement and replacing it with the following:

 

																												Transaction Multiples																												Buyer Impacts												Target Financial Data
																												Target				Buyer								Price/				Price/				Core				Market
																Deal				Stock				Cost				Price/				Price/				Pay-to-				LTM				LTM EPS +				Deposit				One Day				EPS				TBV				TBV				Total				NPAs/				LTM
								Target				Annc.				Value				Consid.				Saves				TBV				TBV				Trade(1)				EPS				Cost Saves				Prem.				Prem.				Acc/(Dil)				Acc/(Dil)				Earnback				Assets				Assets				ROAA
			Acquirer		Target			ST				Date				($MM)				(%)				(%)				(x)				(x)				(x)				(x)				(x)				(%)				(%)				(%)				(%)				(yrs)				($MM)				(%)				(%)
1			The First Bancshares		Heritage Southeast Bancorp.			GA				7/27/22				208				100	%			30	%			1.79	x			1.67	x			1.07	x			15.5	x			8.6	x			6.9	%			32.0	%			10.0	%			(8.0	%)			3.0				1,697				--				0.8	%
2			Brookline Bancorp Inc.		PCSB Financial Corp.			NY				5/24/22				320				57	%			30	%			1.18	x			1.35	x			0.87	x			20.3	x			14.0	x			3.3	%			13.9	%			13.0	%			--				--				1,985				0.4	%			0.8	%
3			United Community Banks Inc.		Progress Financial Corp.			AL				5/4/22				268				97	%			25	%			1.65	x			1.86	x			0.89	x			13.2	x			8.8	x			7.9	%			--				2.0	%			--				--				1,860				0.2	%			1.2	%
4			National Bank Holdings Corp.		Bancshares of Jackson Hole Inc			WY				4/1/22				230				77	%			28	%			2.03	x			1.71	x			1.19	x			19.6	x			--				8.5	%			--				15.7	%			--				2.9				1,599				0.4	%			1.0	%
5			Origin Bancorp Inc.		BT Holdings Inc.			TX				2/24/22				313				97	%			30	%			1.45	x			1.51	x			0.96	x			13.8	x			10.0	x			7.0	%			--				12.7	%			(3.6	%)			2.2				1,989				0.8	%			1.3	%
6			Simmons First National Corp.		Spirit of Texas Bancshares Inc			TX				11/19/21				582				100	%			35	%			1.83	x			1.72	x			1.07	x			12.4	x			9.1	x			12.8	%			20.0	%			9.8	%			(2.0	%)			2.8				3,154				0.2	%			1.5	%
7			OceanFirst Financial Corp.		Partners Bancorp			MD				11/4/21				188				81	%			40	%			1.46	x			1.38	x			1.05	x			26.3	x			9.6	x			5.3	%			20.1	%			10.0	%			(4.0	%)			3.0				1,638				0.8	%			0.5	%
8			First Merchants Corp.		Level One Bancorp Inc.			MI				11/4/21				332				74	%			30	%			1.83	x			1.73	x			1.06	x			10.0	x			7.0	x			9.7	%			15.7	%			10.4	%			(4.3	%)			2.9				2,544				0.5	%			1.3	%
9			Old Second Bancorp Inc.		West Suburban Bancorp Inc.			IL				7/26/21				286				65	%			37	%			1.22	x			1.14	x			1.07	x			14.5	x			7.9	x			2.2	%			2.7	%			38.0	%			(18.0	%)			4.8				2,972				1.1	%			0.7	%
10			South State Corporation		Atlantic Capital Bcshs Inc.			GA				7/23/21				545				100	%			33	%			1.62	x			1.59	x			1.02	x			12.5	x			9.5	x			--				11.2	%			3.0	%			(2.0	%)			2.0				3,780				0.5	%			1.3	%
11			United Community Banks Inc.		Reliant Bancorp Inc.			TN				7/14/21				519				100	%			31	%			1.81	x			1.72	x			1.05	x			10.4	x			8.0	x			12.1	%			11.0	%			8.5	%			(3.7	%)			3.0				3,098				--				1.6	%
12			F.N.B. Corp.		Howard Bancorp Inc.			MD				7/13/21				422				100	%			50	%			1.54	x			1.47	x			1.05	x			18.0	x			10.2	x			9.0	%			40.6	%			4.0	%			(2.0	%)			3.0				2,600				0.6	%			0.9	%
13			Lakeland Bancorp		1st Constitution Bancorp			NJ				7/12/21				244				99	%			44	%			1.52	x			1.39	x			1.10	x			11.5	x			7.0	x			5.9	%			14.1	%			10.1	%			(3.9	%)			3.3				1,789				1.0	%			1.2	%
14			Columbia Banking System Inc.		Bank of Commerce Holdings			CA				6/23/21				269				99	%			30	%			1.66	x			1.90	x			0.87	x			14.7	x			10.3	x			7.1	%			13.7	%			4.0	%			0.3	%			0.0				1,829				0.4	%			1.1	%
15			United Bankshares Inc.		Community Bankers Trust Corp			VA				6/3/21				305				96	%			30	%			1.68	x			2.01	x			0.84	x			14.2	x			10.1	x			11.7	%			41.9	%			2.5	%			0.3	%			0.0				1,699				0.7	%			1.3	%
16			First Foundation Inc.		TGR Financial Inc.			FL				6/3/21				295				97	%			30	%			1.81	x			1.81	x			1.00	x			17.2	x			12.0	x			7.0	%			8.9	%			9.5	%			(2.4	%)			2.1				2,274				0.0	%			0.9	%
17			First Bancorp		Select Bancorp Inc.			NC				6/1/21				314				99	%			45	%			1.85	x			2.06	x			0.90	x			23.8	x			11.6	x			11.0	%			28.6	%			10.0	%			(3.0	%)			2.0				1,832				0.6	%			0.8	%
18			Glacier Bancorp Inc.		Altabancorp			UT				5/18/21				935				100	%			18	%			2.88	x			3.31	x			0.87	x			22.0	x			18.4	x			20.0	%			12.9	%			5.8	%			1.0	%			0.0				3,522				0.1	%			1.4	%
19			Enterprise Financial Services		First Choice Bancorp			CA				4/26/21				404				99	%			25	%			1.89	x			1.93	x			0.98	x			11.5	x			9.4	x			10.6	%			35.0	%			8.5	%			(2.7	%)			2.6				2,501				0.2	%			1.5	%
20			Nicolet Bankshares Inc.		Mackinac Financial Corp			MI				4/12/21				248				80	%			30	%			1.69	x			--				--				18.3	x			10.3	x			--				69.4	%			14.0	%			(5.0	%)			1.9				1,502				0.9	%			0.9	%
21			Peoples Bancorp Inc.		Premier Financial Bancorp Inc.			WV				3/29/21				292				99	%			30	%			1.39	x			1.62	x			0.86	x			12.9	x			9.0	x			--				9.5	%			21.0	%			(6.7	%)			2.6				1,946				1.2	%			1.2	%

 

Source: S&P Global Market Intelligence, Professional Management.

Note: Dollars in millions.

(1)

Pay-to-Trade multiple defined as transaction P/TBV divided by Buyer P/TBV.

 

 

10.

The disclosure under the heading “Proposal 1: The Merger — Opinion of Professional’s Financial Advisor — Relevant Regional Transactions Analysis — Professional” is amended by deleting the bulleted list of transactions at the top of page 65 of the Definitive Proxy Statement and replacing it with the following:

 

																												Transaction Multiples																												Buyer Impacts												Target Financial Data
																												Target				Buyer								Price/				Price/				Core				Market
																Deal				Stock				Cost				Price/				Price/				Pay-to-				LTM				LTM EPS +				Deposit				One Day				EPS				TBV				TBV				Total				NPAs/				LTM
								Target				Annc.				Value				Consid.				Saves				TBV				TBV				Trade(1)				EPS				Cost Saves				Prem.				Prem.				Acc/(Dil)				Acc/(Dil)				Earnback				Assets				Assets				ROAA
			Acquirer		Target			ST				Date				($MM)				(%)				(%)				(x)				(x)				(x)				(x)				(x)				(%)				(%)				(%)				(%)				(yrs)				($MM)				(%)				(%)
1			Seacoast Banking Corp. of FL		Drummond Banking Co.			FL				5/4/22				173				100	%			40	%			1.91	x			2.01	x			0.95	x			13.8	x			--				9.5	%			--				8.6	%			(2.6	%)			1.6				1,025				0.2	%			1.4	%
2			The First Bancshares		Beach Bancorp Inc.			FL				4/26/22				117				99	%			50	%			1.54	x			1.64	x			0.94	x			50.9	x			11.4	x			9.6	%			--				2.3	%			(1.0	%)			1.8				620				1.8	%			0.4	%
3			Seacoast Banking Corp. of FL		Apollo Bancshares/Apollo Bank			FL				3/29/22				168				95	%			39	%			1.95	x			2.02	x			0.96	x			20.0	x			11.9	x			9.7	%			--				8.0	%			(2.5	%)			2.3				1,044				0.4	%			0.9	%
4			Origin Bancorp Inc.		BT Holdings Inc.			TX				2/24/22				313				97	%			30	%			1.45	x			1.51	x			0.96	x			13.8	x			10.0	x			7.0	%			--				12.7	%			(3.6	%)			2.2				1,989				0.8	%			1.3	%
5			Simmons First National Corp.		Spirit of Texas Bancshares Inc			TX				11/19/21				582				100	%			35	%			1.83	x			1.72	x			1.07	x			12.4	x			9.1	x			12.8	%			20.0	%			9.8	%			(2.0	%)			2.8				3,154				0.2	%			1.5	%
6			Bus. First Bancshares Inc.		Texas Citizens Bancorp Inc.			TX				10/21/21				54				99	%			--				1.57	x			1.46	x			1.08	x			16.6	x			4.5	x			4.8	%			--				15.0	%			(5.0	%)			3.0				538				4.1	%			0.9	%
7			Home Bancshares, Inc.		Happy Bancshares Inc.			TX				9/15/21				888				100	%			33	%			1.59	x			2.17	x			0.73	x			12.2	x			7.9	x			7.3	%			--				9.2	%			1.5	%			0.0				6,262				0.4	%			1.3	%
8			Seacoast Banking Corp. of FL		Legacy Bank of Florida			FL				3/23/21				107				93	%			45	%			1.87	x			2.19	x			0.85	x			18.1	x			11.3	x			16.2	%			--				6.5	%			(0.1	%)			0.3				533				0.3	%			1.2	%
9			BancorpSouth Bank		National United Bancshares Inc			TX				12/2/20				115				71	%			40	%			1.56	x			--				--				15.8	x			8.5	x			6.8	%			--				--				(1.5	%)			3.0				749				1.2	%			1.1	%
10			PNC Financial Services Group		BBVA USA Bancshares, Inc.			TX				11/16/20				11,567				0	%			35	%			1.31	x			1.33	x			--				--				NM				--				--				21.0	%			(8.5	%)			--				103,653				1.3	%			(2.5	%)
11			United Community Banks Inc.		Three Shores Bancorp. Inc.			FL				3/9/20				218				89	%			24	%			1.33	x			1.17	x			1.14	x			--				10.2	x			4.4	%			(17.1	%)			--				--				--				1,874				0.4	%			0.8	%
12			Heartland Financial USA Inc.		AIM Bancshares Inc.			TX				2/11/20				280				90	%			30	%			2.10	x			1.69	x			1.24	x			13.4	x			8.5	x			12.3	%			--				10.0	%			(5.3	%)			3.6				1,776				0.1	%			1.4	%
13			Banco de Credito e Inversiones		Executive Banking Corp.			FL				9/25/19				62				0	%			--				1.45	x			--				--				66.9	x			--				4.9	%			--				--				--				--				522				0.4	%			0.3	%
14			First Financial Bankshares		TB&T Bancshares Inc.			TX				9/19/19				208				100	%			--				2.97	x			4.54	x			0.65	x			19.4	x			--				28.0	%			--				--				--				--				624				0.0	%			1.8	%
15			Professional Holding Corp.		Marquis Bancorp Inc.			FL				8/12/19				83				89	%			--				1.53	x			1.32	x			1.16	x			11.9	x			7.3	x			10.8	%			--				--				--				--				680				0.3	%			1.2	%
16			Prosperity Bancshares Inc.		LegacyTexas Finl Group Inc			TX				6/17/19				2,057				85	%			25	%			2.16	x			2.01	x			1.08	x			12.7	x			10.9	x			20.8	%			9.3	%			10.3	%			(9.7	%)			4.5				9,346				0.7	%			1.8	%
17			Banco Bradesco SA		BAC Florida Bank			FL				5/6/19				508				0	%			--				2.63	x			--				--				17.1	x			--				34.6	%			--				--				--				--				2,275				1.6	%			1.4	%
18			BancFirst Corp.		Pegasus Bank			TX				4/24/19				122				0	%			--				2.59	x			2.21	x			--				17.1	x			--				13.9	%			--				--				--				--				624				0.0	%			1.2	%

 

Source: S&P Global Market Intelligence, Company documents.

Note: Dollars in millions.

(1)

Pay-to-Trade multiple defined as transaction P/TBV divided by Buyer P/TBV.

 

 

Important Information About the Proposed Transaction and Where to Find It

 

In connection with the Mergers, Seacoast filed the Form S-4/A Registration Statement with the SEC on November 10, 2022 (the “Registration Statement”), which includes the Definitive Proxy Statement and a prospectus of Seacoast. The Registration Statement has been declared effective by the SEC and the Definitive Proxy Statement has been mailed to the Company’s shareholders. Additionally, the Company and Seacoast filed and may file other relevant materials with the SEC in connection with the Mergers. Copies of such filings may be obtained free of charge at the SEC’s web site at www.sec.gov. SHAREHOLDERS OF THE COMPANY ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO AND ANY DOCUMENTS INCORPORATED BY REFERENCE THEREIN) AND THE OTHER RELEVANT MATERIALS BEFORE MAKING ANY VOTING DECISION WITH RESPECT TO THE MERGERS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS AND THE PARTIES THERETO.

 

The information contained on, or that may be accessed through, the websites referenced in this communication is not incorporated by reference into, and is not a part of, this communication.

 

Participants in the Solicitation

 

The Company and its directors and officers may be deemed participants in the solicitation of proxies of the Company’s shareholders in connection with the proposed Mergers. Shareholders may obtain more detailed information regarding the names, affiliations, and interests of certain of the Company’s executive officers and directors in the solicitation by reading the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, the Definitive Proxy Statement, and other relevant materials filed with the SEC in connection with the Mergers. Information concerning the interests of the Company’s participants in the solicitation, which may, in some cases, be different than those of their shareholders generally, is set forth in the Definitive Proxy Statement.

 

 

Cautionary Language Regarding Forward-Looking Statements

 

Certain statements contained in this Current Report on Form 8-K, including statements included or incorporated by reference in this Current Report on Form 8-K, are not statements of historical fact and constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be protected by the safe harbor provided by that Act. These statements are subject to risks and uncertainties and include information about possible or assumed future results of operations of Seacoast after the Merger is completed, as well as information about the Merger. Words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “would,” “continue,” “should,” “may,” or similar expressions, or the negatives thereof, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Many possible events or factors could affect the future financial results and performance of each of Seacoast and the Company before the Merger or Seacoast after the Merger, and could cause those results or performance to differ materially from those expressed in the forward-looking statements. These possible events or factors include, but are not limited to: (a) general business and economic conditions, either globally, nationally, in the State of Florida, or in the specific markets in which Seacoast or the Company operate, including the negative impacts and disruptions resulting from rising interest rates, supply chain challenges and inflation, which have had and may likely continue to have an adverse impact on our business operations and performance, and could continue to have a negative impact on our credit portfolio, stock price, borrowers and the economy as a whole both globally and domestically; (b) the impact of Hurricane Ian on Florida generally, as well as certain of the communities Professional Bank and SNB serve, and which could continue to have a negative impact on our business, credit portfolio, borrowers and our stock price; (c) the failure to obtain the approval of the Company’s shareholders in connection with the Merger; (d) the risk that the Merger may not be completed in a timely manner or at all, which may adversely affect Seacoast’s and the Company’s respective businesses and the price of their respective common stocks; (e) the risk that a condition to closing of the proposed Merger may not be satisfied; (f) the risk that a required regulatory approval for the proposed Merger is not obtained or is obtained subject to conditions that are not anticipated; (g) the parties’ ability to achieve the synergies and value creation contemplated by the proposed Merger; (h) the parties’ ability to promptly and effectively integrate the businesses of Seacoast and the Company, including unexpected transaction costs, including the costs of integrating operations, severance, professional fees and other expenses; (i) the diversion of management time on issues related to the Merger; (j) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement; (k) the effect of the announcement or pendency of the Merger on Seacoast’s customer, employee and business relationships, operating results, and business generally; (l) deposit attrition, operating costs, customer loss and business disruption following the proposed Merger, including difficulties in maintaining relationships with employees, may be greater than expected; (m) reputational risks and the reaction of the companies’ customers to the proposed Merger; (n) customer acceptance of the combined company’s products and services; (o) increased competitive pressures and solicitations of customers and employees by competitors; (p) the failure to consummate or delay in consummating the Merger for other reasons; (q) the outcome of any legal proceedings that may be instituted against Seacoast or the Company related to the Merger Agreement or the Merger; (r) changes in laws or regulations; (s) the dilution caused by Seacoast’s issuance of additional shares of its common stock in the Merger or related to the Merger; (t) the sale price of Seacoast common stock could decline before the completion of the Merger, including as a result of the financial performance of Seacoast or the Company or more generally due to broader stock market movements and the performance of financial companies and peer group companies; (u) changes in interest rates, deposit flows, loan demand, and real estate values; and (v) the ongoing impacts and disruptions resulting from COVID-19 or other variants on the economies and communities Professional Bank and SNB serve, which has had and may likely continue to have an adverse impact on each company’s business operations and performance, and could continue to have a negative impact on our credit portfolio, stock price, borrowers and the economy as a whole both globally and domestically.

 

For additional information concerning factors that could cause actual conditions, events or results to materially differ from those described in the forward-looking statements, please refer to the “Risk Factors” section of the Definitive Proxy Statement, as well as the factors set forth under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in each of Seacoast’s and the Company’s most recent Form 10-K and Form 10-Q reports, which are available online at www.sec.gov, and are incorporated by reference herein. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, what impact they will have on the results of operations or financial condition of Seacoast or the Company. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date made. As for the forward-looking statements that relate to future financial results and other projections, actual results will be different due to the inherent uncertainties of estimates, forecasts and projections and may be better or worse than projected and such differences could be material. Given these uncertainties, we caution you not to place reliance on these forward-looking statements. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

 

No Offer or Solicitation

 

This communication shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the proposed transaction. This communication shall also not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Professional Holding Corp.
Date: December 9, 2022	By:	/s/ Michael C. Sontag
		Michael C. Sontag
		Corporate Secretary