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OceanFirst signs deal for Country Bank Holding
Posted on Monday, 12 August 2019 13:28
OceanFirst Financial is scaling up its presence in metropolitan New York through the acquisition of OTC Pink-listed Country Bank Holding for USD 102.20 million. Founded in 1988, the parent of Country Bank provides banking services to small businesses and individuals through a network of five branches spanning Midtown Manhattan to Scarsdale. As at 30th June 2019, it had USD 783.40 million in assets, USD 592.40 million in loans, USD 649.70 million in deposits and USD 67.50 million in shareholders’ equity. Country had tangible common equity (TCE) to tangible assets of 8.6 per cent, a return on average assets of 1.3 per cent and an efficiency ratio of 55.9 per cent, as at 30th June 2019. The terms of the merger agreement equate to a price of USD 46,280 per share, which implies a tangible book value per share of 151.0 per cent and 9.8x earnings per share for the last 12 months. OceanFirst is building a premier regional franchise through the two takeovers, which will bolster the group’s existing geographical footprint. As well as clearing the way to making significant cost savings, the deals also add scale to the lender’s metropolitan New York lending initiative. OceanFirst expects the acquisitions will help push total assets to an aggregate USD 9.90 billion, to the USD 10.00 billion threshold. The group will have a pro forma market capitalisation of USD 1.40 billion, total loans of USD 7.50 billion and deposits of USD 7.70 billion, as well as return on average assets of 1.4 per cent and a TCE ratio of 9.2 per cent. OceanFirst has successfully integrated and met financial targets for five whole bank acquisitions since 2015, including Colonial American Bank, Cape Bancorp, Ocean Shore, Sun Bancorp and Capital Bank of New Jersey. Zephyr, the M&A database published by Bureau van Dijk, shows there have been 44 US banking sector acquisitions announced in 2019 to date, of which Country is the 12th biggest. © Zephus Ltd