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Riverview snags CBT
Posted on Friday, 21 April 2017 11:50
Riverview Financial is taking over CBT Financial in a USD 48.80 million deal which creates a central Pennsylvania franchise with combined assets of USD 1.20 billion and an increased deposit market share.
The all-scrip acquisition extends the Harrisburg-based lender’s local footprint into the Clearfield, Huntingdon, Blair, and Centre county markets.
Riverview is handing over 2.86 of its own shares for each CBT stock, equating to USD 33.78 apiece or a price to 31st December 2016 tangible equity of 126.0 per cent.
The deal also represents multiples of 14.8x price to 2016 earnings; 2.9 per cent premium to core deposits as of 31st December 2016; and a 9.0 per cent market premium.
Described as a merger of equals, Riverview shareholders will end up with 54.0 per cent of the combined company, with CBT investors owning the balance, and the 16 seats on the board of directors will be split evenly.
Improved liquidity, larger lending limits, greater flexibility in an increasingly competitive market and pro forma capital ratios remaining above well-capitalised, are just some of the perks of the combination.
Others include an increased portfolio of 33 banking locations (Riverview: 20; CBT: 13) and wealth management assets under management of roughly USD 400.00 million.
Chief executive Kirk Fox noted: “When this merger is complete, we estimate our compounded average growth rate of assets would be approximately 31.0 per cent over the past ten-year period.”
In the last 10 years Riverview has completed three other acquisitions: First Perry in 2008, Union Bancorp in 2013 and Citizens National Bank of Meyersdale.
The holding company has one wholly-owned subsidiary, Riverview Bank, which in turn offers financial services through its own divisions comprising Marysville Bank, Halifax Bank, Citizens Neighborhood Bank and Riverview Financial Wealth Management.
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