In New Jersey, Hamilton-based First Bank is acquiring Delanco-based Delanco Bancorp Inc. in an all-stock deal expected to close in the first quarter of 2018.
Each Delanco common share will be exchanged for 1.11 First Bank common shares. Based on the buyer's Oct. 17 closing price of $12.75 per share, the deal has an implied value of $14.15 per share, or $13.5 million in total.
The deal is still subject to regulatory and shareholder approvals. If completed, Delanco Federal Savings Bank, which had $127.1 million in assets as of Sept. 30, will merge into First Bank.
On a per-share basis, SNL calculates that the deal value is 98.7% of book and tangible book. The price is 12.03% of deposits, 10.60% of assets and the tangible book discount-to-core deposits ratio is 0.18%.
SNL valuations for bank and thrift targets in the Mid Atlantic region between Oct. 18, 2016, and Oct. 18, 2017, averaged 144.26% of book, 149.54% of tangible book and had a median of 28.45x last-12-months earnings, on a per-share basis.
The one-day premium is 8.03%, based on Delanco's Oct. 17 closing price of $13.1. The one-month premium is 9.71%, based on Delanco's Sept. 18 closing price of $12.9.
First Bank in September completed another acquisition, that of Doylestown, Pa.-based Bucks County Bank. First Bank and Bucks combined have assets of approximately $1.6 billion, according to the press release.
The deal is expected to be immediately accretive to First Bank's EPS and only minimally dilutive to tangible book value.
First Bank will enter Burlington County, N.J., with two branches to be ranked No. 14 with a 1.03% share of approximately $10.88 billion in total market deposits.
If the deal does not close, Delanco may pay a termination fee of $550,000 under certain circumstances.
Sandler O'Neill & Partners LP and Covington & Burling LLP served as First Bank's financial and legal advisers, respectively. For Delanco, it was FinPro Capital Advisors and Kilpatrick Townsend & Stockton LLP.
SNL is an offering of S&P Global Market Intelligence.