Mercantile Bank Limited Pages

Mercantile Bank Acquisition

Mercantile Bank Acquisition

Below is the information on the Mercantile Bank Acquition.

Mergers & Acquisitions

M&A History<< Return to Mergers & Acquisitions
Deal OverviewBuyer: Mercantile Bank CorporationActual Acquirer: Mercantile Bank CorporationTarget: Firstbank CorporationDeal Type: Bank & Thrift CompanyAgreement Date8/14/2013Announcement Date8/15/2013Announced Deal Value ($M)154.54
StatusCompletedCompletion Date6/1/2014Announced Deal Value Per Share ($)19.02Consideration BreakoutCommon Stock ($M)173.0Common Stock Issued8,087,272Deal Pricing Ratios AnnouncementCompletionPrice / Book (%)115.9123.7Price / Tangible Book (%)159.6166.6Price / Earnings (x)13.915.2Price / Deposits (%)12.7913.99Price / Assets (%)13.0814.06Tangible Book Premium/ Deposits (%)NANADeal TermsDescription of ConsiderationMercantile Bank Corp. exchanged 1.00 share of its common stock for each outstanding share of Firstbank Corp. In addition, Mercantile Bank Corp. assumed $36.1 million in junior subordinated debentures.Accounting MethodAcquisitionIn-State Transaction?YesMerger of Equals?YesGeographic Expansion?Partial OverlapGoodwill Generated ($000)49,473Estimated Cost Savings (%)12.80Estimated Cost Savings ($000)5,500Est. Restructuring Charges ($000)12,100Maximum Termination Fee ($000)7,900Minimum Termination Fee ($000)0Exchange Ratio (Common For Common)1.000000Exchange Ratio (Common For Preferred)NAExchange Ratio (Preferred For Common)NAExchange Ratio (Preferred For Preferred)NALockup AgreementNoStrike Price ($)NA% of Shares OutstandingNAShares Under OptionNACore Deposit Intangibles ($000)17,478Additional Deal InformationPost-Completion
YearDeal
Accretive?Earnings
Accretion(%)Earnings
Accretion($)Est. Cost
Savings(%)Est. Cost
Savings($000)1Accretive20.00NA83,3002Accretive20.00NANANADeal Advisers – Financial AdvisersParty AdvisedAdviser Hired?Firm NameBuyerYesKeefe Bruyette & Woods Inc.SellerYesSandler O’Neill & Partners LP
Deal Advisers – Legal CounselParty AdvisedAdviser Hired?Firm NameBuyerYesWarner Norcross & Judd LLPSellerYesVarnum LLP