In California,Mechanics Bank will acquireCalifornia Republic Bancorpfor $37.19 per share.
It isa cash transactionexpected to close in the second half, pending regulatory and shareholder approvals.
On a per-share basis, SNL calculates the deal value to be 193.2%of book and 193.6% of tangible book, and 23.8x last-12-months earnings. The priceis 26.83% of deposits and 19.91% of assets, and the tangible book premium-to-coredeposits ratio is 14.56%.
The one-day premium is 50.14%, based on California Republic Bancorp'sApril 27 closing price of $24.77. The one-month premium is also 46.65%, based onCalifornia Republic Bancorp's March 28 closing price of $25.36.
SNL valuations for bank and thrift targets in the West regionbetween April 28, 2015, and April 28, 2016, averaged 137.85% of book, 141.46% oftangible book and had a median of 23.27x LTM earnings, on a per-share basis.
WalnutCreek-based Mechanics had $3.57 billion in assets as of the end of 2015; Irvine-basedCalifornia Republic had $1.65 billion.
Data compiled by SNL shows that Mechanics Bank will enter OrangeCounty, Calif., with two branches to be ranked No. 23, with a 0.82% share of about$99.39 billion in total market deposits; it will enter Los Angeles County, Calif.,with one branch to be ranked No. 49, with a 0.10% share of approximately $340 billionin total market deposits; it will enter San Diego County, Calif., with one branchhaving $73.86 billion in total market deposits; and it will enter Ventura County,Calif., with one branch to be ranked No. 20 with a 0.45% share of approximately$17.05 billion in total market deposits.
KeefeBruyette & Woods Inc. and Sheppard Mullin Richter & Hampton LLP respectivelyserved as California Republic's financial and legal advisers. Wachtell Lipton Rosen& Katz served as Mechanics' legal counsel.