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Atlantic Community, BBN Financial in $17M merger

Camp Hill, Pa.-based Atlantic Community Bancshares Inc. and BBN Financial Corp. of Glastonbury, Conn., will combine in a $17 million stock deal expected to be finalized in December. Each BBN share will be exchanged for 0.265 Atlantic share, subject to final adjustment.

On an aggregate basis, SNL calculates the deal value to be 107.8% of book and 109.2% of tangible book, and 36.2x last-12-months earnings. The price is 12.67% of deposits and 10.17% of assets, and the tangible book premium-to-core deposits ratio is 1.09%.

For comparison, SNL valuations for bank and thrift targets in the Northeast region between Aug. 2, 2016, and Aug. 2, 2017, averaged 144.27% of book, 148.29% of tangible book and had a median of 27.33x LTM earnings, on an aggregate basis.

Bankers' Bank Northeast will merge into Atlantic Community Bankers Bank. The subsidiary banks each have one branch, and both will remain operational after the close.

The resulting entity will have approximately $800 million in assets, $306 million in loans and $536 million in deposits. As of June 30, Bankers' Bank had $167.1 million in total consolidated assets; Atlantic Community Bankers had $636.1 million. BBN will get to keep four board seats at both holding company and subsidiary bank levels. Bankers' Bank President and CEO Craig Howie will become senior executive vice president, in charge of the New England region, as well as of sales, marketing and product development.

Based on data collected by SNL, Atlantic Community Bancshares, Inc. will enter Hartford County, Conn., with one branch to be ranked No. 17 with a 0.37% share of approximately $35.95 billion in total market deposits.

Regulatory and shareholder approvals are pending.

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