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Section 1: 425 (8-K)

8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15 (d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 18, 2019

 

 

FIRST INTERSTATE BANCSYSTEM, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Montana

 

001-34653

 

81-0331430

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

401 North 31st Street, Billings, Montana

 

59116

(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number (including area code): (406) 255-5390

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 8.01 Other Events

Settlement of Certain Litigation Relating to the Merger

On or about February 1, 2019, a purported individual shareholder of Idaho Independent Bank (“IIBK”) filed a lawsuit in the Court for the Fourth Judicial District of the State of Idaho, Ada County (the “Court”), under the caption Parshall v. Idaho Independent Bank, et. al., Case No. CV01-19-02475 (the “Action”). The complaint, which was filed as a putative class action and derivative action on behalf of the individual plaintiff and the public shareholders of IIBK, alleges that the proxy statement/prospectus (the “Proxy Statement/Prospectus”) forming a part of the Form S-4 Registration Statement filed by First Interstate BancSystem, Inc. (“First Interstate”) in connection with the proposed merger of IIBK with First Interstate Bank, the wholly-owned subsidiary of First Interstate, does not contain certain information alleged to be material to the IIBK shareholders concerning the proposed merger. The complaint asserts claims against IIBK’s directors for breach of fiduciary duty, and against First Interstate for aiding and abetting the alleged breach of fiduciary duty. The complaint seeks, among other things, injunctive relief against consummation of the merger and additional, allegedly corrective disclosures as well as unspecified attorneys’ and expert fees.

Solely to avoid the costs, risks, nuisance and uncertainties inherent in litigation and to allow the IIBK shareholders to vote on the proposals required in connection with the proposed merger with First Interstate Bank at the IIBK special meeting of shareholders to be held on March 27, 2019 (the “Special Meeting”), IIBK hereby supplements the disclosures contained in the Proxy Statement/Prospectus (the “Additional Disclosures”). The Additional Disclosures are set forth below and should be read in conjunction with the Proxy Statement/Prospectus.

In light of the Additional Disclosures, the plaintiff has agreed to dismiss the Action with prejudice as to his individual claims and without prejudice to the claims of the members of the putative class. In dismissing the Action, plaintiff has reserved the right to seek an award of attorneys’ fees from the Court.

The agreement to make the Additional Disclosures will not affect the merger consideration to be paid to IIBK’s shareholders or the timing of the Special Meeting.

IIBK and the other defendants, including First Interstate, vigorously deny that the Proxy Statement/Prospectus is deficient in any respect and that the Additional Disclosures are material or required. IIBK and First Interstate believe that the claims asserted in the Action are without merit, and that the Additional Disclosures do not provide information required by the federal securities laws or Idaho law or that is material to the decision of the IIBK shareholders as to how to vote their shares at the Special Meeting. As noted above, the Additional Disclosures are being made solely to eliminate the burden, expense, and nuisance of further litigation, and to avoid any possible delay to the closing of the merger that might arise from further litigation. Nothing in this document shall be deemed an admission of the legal necessity or materiality under any applicable laws for any of the disclosures set forth herein.

 

2


SUPPLEMENT TO PROXY STATEMENT/PROSPECTUS

The following information supplements the Proxy Statement/Prospectus and should be read in connection with the Proxy Statement/Prospectus, which should be read in its entirety. To the extent that information herein differs from or updates information contained in the Proxy Statement/Prospectus, the information contained herein supersedes the information contained in the Proxy Statement/Prospectus. All page references in the information below are to pages in the Proxy Statement/Prospectus, and terms used below have the meanings set forth in the Proxy Statement/Prospectus, unless otherwise defined below. Without admitting in any way that the disclosures below are material or otherwise required by law, IIBK and First Interstate make the following Additional Disclosures:

The disclosure under the heading “DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor” beginning on page 35 of the Proxy Statement/Prospectus related to net income estimates for First Interstate for the years ending December 31, 2018 through December 31, 2020, as well as the estimated long-term net income growth rate for the years thereafter and estimated annual dividends per share for the years ending December 31, 2018 through December 31, 2022, as directed by the senior management of First Interstate, is hereby supplemented with the following information:

The publicly available mean analyst net income estimates for First Interstate for the years ending December 31, 2018 through December 31, 2020, as well as a long-term net income growth rate for the years thereafter and annual dividends per share for the years ending December 31, 2018 through December 31, 2022, as directed by the senior management of First Interstate are as follows:

 

     12/31/2018      12/31/2019      12/31/2020      12/31/2021      12/31/2022  

Net Income ($mm)

     165        197        203        218        233  

Earnings Per Share ($)

     2.82        3.23        3.34        3.57        3.82  

Dividends Per Share ($)

     1.12        1.17        1.17        1.17        1.17  

The disclosure under the heading “ DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor—IIBK Comparable Company Analyses” on page 39 of the Proxy Statement/Prospectus is hereby supplemented with the following information:

The individual multiples and metrics for the companies observed by Sandler in Sandler’s IIBK Comparable Company Analysis, are attached separately. See IIBK Comparable Companies attached as Exhibit 99.1.

The disclosure under the heading “DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor—First Interstate Net Present Value Analyses” on page 45 of the Proxy Statement/Prospectus is supplemented with the following information:

The 2022 terminal value of IIBK common stock was presented as a range. Sandler O’Neill selected the price to earnings and tangible book value multiples for IIBK based on Sandler O’Neill’s review of, among other matters, the respective trading multiples of selected companies that Sandler O’Neill deemed to be comparable to IIBK. The range of discount rates of 9.0% to 15.0% used in the analysis was selected taking into account a capital asset pricing model implied cost of equity calculation. The following table describes the discount rate calculation for IIBK common stock prepared by Sandler O’Neill. In its normal course of business, Sandler O’Neill employs the Duff & Phelps Cost of Capital Navigator in determining an appropriate discount rate in which the discount rate equals the risk-free rate plus the equity risk premium plus the size premium plus the industry premium.

 

Calculation of Discount Rate  

Risk Free Rate

     3.50

Equity Risk Premium

     5.00

Size Premium

     3.48

Industry Premium

     0.70
  

 

 

 

Discount Rate

     12.68

 

3


The disclosure under the heading “DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor—Analysis of Selected Merger Transactions “ on page 42 of the Proxy Statement/Prospectus is supplemented with the following information:

The individual multiples and metrics for the companies observed by Sandler in the analysis are attached separately. See Selected Merger Transactions attached as Exhibit 99.2.

The disclosure under the heading “ DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor—First Interstate Comparable Company Analysis” on page 43 of the Proxy Statement/Prospectus is supplemented with the following information:

The individual multiples and metrics for the companies observed by Sandler in the analysis are attached separately. See First Interstate Comparable Companies attached as Exhibit 99.3.

The disclosure under the heading “ DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor—First Interstate Net Present Value Analysis” on page 45 of the Proxy Statement/Prospectus is supplemented with the following information:

The 2022 terminal value of First Interstate common stock was presented as a range. Sandler O’Neill selected the price to earnings and tangible book value multiples for First Interstate based on Sandler O’Neill’s review of, among other matters, the respective trading multiples of selected companies that Sandler O’Neill deemed to be comparable to First Interstate. The following table describes the discount rate calculation for First Interstate common stock prepared by Sandler O’Neill. In its normal course of business, Sandler O’Neill employs the Duff & Phelps Cost of Capital Navigator and Bloomberg in determining an appropriate discount rate in which the discount rate equals the risk-free rate plus the product of the 2-year adjusted beta for First Interstate common stock and the equity risk premium, plus the size premium.

 

Calculation of Discount Rate  

Risk Free Rate

     3.50

2 Year Beta of Stock

     106.5

Equity Risk Premium

     5.00

Size Premium

     0.96
  

 

 

 

Discount Rate

     9.79

 

4


The disclosure under the heading “ DESCRIPTION OF THE MERGER—Opinion of IIBK’s Financial Advisor—Pro Forma Merger Analysis” on page 46 of the Proxy Statement/Prospectus is supplemented with the following information:

Sandler used the following assumptions related to the transaction expenses, purchase accounting adjustments, cost savings, and revenue impacts following the close of the proposed transaction:

 

  (a)

Cost Savings of approximately 56% of IIBK initial noninterest expense base (75% of cost savings realized in 2019, 100% realized in 2020 and thereafter);

 

  (b)

Transaction expenses of approximately $16.9 million on a pre-tax basis;

 

  (c)

Core Deposit Intangible of approximately $14.9 million (2.5%), amortized over 10 years using the sum-of-the-years digits method;

 

  (d)

Negative credit mark on loans of approximately $3.8 million;

 

  (e)

Negative rate mark on loans of approximately $8.9 million, accreted over 5 years using the straight-line method;

 

  (f)

Discount on available for sale securities of approximately $128,000, accreted over 2 years using the straight-line method;

 

  (g)

A $379,000 write-off associated with computer equipment and software;

 

  (h)

A write-up of approximately $5.7 million associated with property, plant and equipment (“PP&E”), accreted over 15 years using the straight-line method;

 

  (i)

A write-up of approximately $3.2 million associated with other real estate owned;

 

  (j)

A write-down of approximately $500,000 associated with time deposits;

 

  (k)

A write-up of approximately $192,000 associated with Federal Home Loan Bank borrowings, accreted over 2 years using the straight-line method;

 

  (l)

A write-up associated with the non-qualified retirement plan of approximately $2.6 million.

The analysis indicated that the merger could be accretive to First Interstate’s earnings per share (excluding one-time transaction costs and expenses) in the years ending December 31, 2019 through December 31, 2022 by approximately 1.5%, 2.9%, 3.2% and 3.3%, respectively. The analysis indicated that the merger could be dilutive to First Interstate’s estimated tangible book value per share at the completion of the merger and at December 31, 2019 and December 31, 2020, by approximately 1.8%, 1.3% and 0.6%, respectively.

Forward-Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (1) the benefits of the proposed merger between First Interstate, First Interstate Bank and IIBK, including anticipated future results, cost savings and accretion to reported earnings that may be realized from the proposed merger; (2) First Interstate’s, First Interstate Bank’s and IIBK’s plans, objectives, expectations and intentions and other statements contained in this presentation that are not historical facts; and (3) other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” or words of similar meaning.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. The following factors, among others, could cause actual results to differ materially from the anticipated results expressed in the forward-looking statements: the businesses of First Interstate, First Interstate Bank and IIBK may not be combined successfully, or such combination may take longer than expected; the cost savings from the proposed merger may not be fully realized or may take longer than expected; operating costs, customer loss and business disruption following the proposed merger may be greater than expected; governmental approvals of the proposed merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the proposed merger or

 

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otherwise; the shareholders of IIBK may fail to approve the proposed merger; credit and interest rate risks associated with First Interstate’s, First Interstate Bank’s and IIBK’s respective businesses; and difficulties associated with achieving expected future financial results. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in First Interstate’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to First Interstate, First Interstate Bank or IIBK or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, First Interstate, First Interstate Bank and IIBK do not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

Additional Information and Where to Find It

This communication is being made in respect of the proposed merger. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

In connection with the proposed transaction, First Interstate has filed a registration statement on Form S-4 with the SEC, which includes a proxy statement of IIBK and a prospectus of First Interstate, and First Interstate will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, investors and security holders of IIBK are urged to carefully read the entire registration statement and proxy statement/prospectus, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. The documents filed by First Interstate with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov. In addition, the documents filed by First Interstate may be obtained free of charge at its website at www.fibk.com or by contacting First Interstate BancSystem, Inc., 401 North 31st Street, Billings, Montana 59116, Attention: Marcy Mutch, Chief Financial Officer, telephone 406-255-5312.

First Interstate, First Interstate Bank and IIBK and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies of IIBK’s shareholders in connection with the proposed transaction. Information about the directors and executive officers of First Interstate and their ownership of First Interstate common stock is set forth in the preliminary proxy statement for First Interstate’s 2019 Annual Meeting of Shareholders, as filed with the SEC on Schedule 14A on March 1, 2019. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement/prospectus regarding the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.

 

Item 9.01

Financial Statements and Exhibits

 

(a)    Financial Statements of Businesses Acquired. Not applicable.
(b)    Pro Forma Financial Information. Not applicable.
(c)    Shell Company Transactions. Not applicable.
(d)    Exhibits    Description
   99.1    IIBK Comparable Companies.
   99.2    Selected Merger Transactions.
   99.3    First Interstate Comparable Companies.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

    FIRST INTERSTATE BANCSYSTEM, INC.
Date: March 18, 2019     By:   /s/ Kevin P. Riley
      Kevin P. Riley
      President and Chief Executive Officer

 

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Section 2: EX-99.1 (EX-99.1)

EX-99.1

Exhibit 99.1

 

    Publicly-Traded Western Region Banks With Total Assets $500 Million—$1 Billion  
Financials as of
June 30, 2018 unless
otherwise noted
                Market Data (as of
10/10/2018)
                YTD
Profitability
          Balance Sheet
Ratios¹
       

Company Name

  City, St   Ticker   Total
Assets

($mm)
    Mkt
Cap

($mm)
    Stock
Price

($)
    Price/
Tang.
Book
Value

(%)
    Price/
YTD
Ann.
EPS

(x)
    1 yr
Price
Change

(%)
    Div.
Yield

(%)
    YTD
Eff.
Ratio

(%)
    YTD
NIM

(%)
    YTD
ROAA

(%)
    TCE/
TA

(%)
    CRE
Conc.
Ratio

(%)
    Loan/
Dpts.

(%)
    NPAs/
Assets

(%)
 

Seacoast Commerce Banc Holdings

  San Diego, CA   SCBH     998       207       22.15       268       16.3       10.8       1.6       67.7       5.67       1.31       9.2       218       104       0.38  

OP Bancorp

  Los Angeles, CA   OPBK     979       177       11.35       146       12.1       23.4       0.0       58.2       4.48       1.52       12.4       252       101       0.10  

First Choice Bancorp

  Cerritos, CA   FCBP     963       306       26.25       175       16.4       8.5       3.0       56.2       4.52       1.28       11.3       305       101       0.20  

California BanCorp

  Lafayette, CA   CALB     911       178       22.30       179       17.7       20.5       0.0       66.0       4.08       0.92       9.2       235       94       0.39  

Pacific Financial Corporation

  Aberdeen, WA   PFLC     887       132       12.50       176       13.3       34.4       2.0       74.5       4.38       1.10       8.6       230       93       0.20  

Suncrest Bank

  Visalia, CA   SBKK     883       164       13.25       202       18.9       25.0       0.0       52.8       4.36       0.93       9.7       266       85       0.24  

United Security Bancshares

  Fresno, CA   UBFO     879       187       11.07       186       14.2       15.3       3.6       56.5       4.22       1.56       11.5       234       76       2.53  

Community West Bancshares

  Goleta, CA   CWBC     865       99       12.00       135       13.3       15.4       1.7       70.8       4.12       0.89       8.5       301       108       1.07  

Presidio Bank

  San Francisco, CA   PDOB     853       164       26.50       203       16.0       32.5       0.0       60.5       4.20       1.25       9.5       393       86       0.00  

Coastal Financial Corporation

  Everett, WA   CCB     851       200       16.82       225       19.1       —         0.0       67.5       4.16       1.01       8.2       373       94       0.24  

Avidbank Holdings, Inc.

  San Jose, CA   AVBH     845       148       24.75       158       14.9       23.8       0.0       63.8       4.52       1.17       11.1       378       102       0.27  

Eagle Bancorp Montana, Inc.

  Helena, MT   EBMT     827       99       18.25       128       26.1       (6.1     2.0       83.6       3.85       0.46       9.6       195       97       0.24  

Plumas Bancorp

  Quincy, CA   PLBC     765       128       25.09       216       9.7       14.0       1.4       53.0       4.60       1.83       7.8       209       76       0.39  

Citizens Bancorp

  Corvallis, OR   CZBC     761       116       21.44       175       15.1       42.9       1.7       59.2       3.56       1.08       9.6       129       62       0.39  

Private Bancorp of America, Inc.

  La Jolla, CA   PBAM     711       131       26.00       163       32.5       11.8       0.0       77.2       3.96       0.61       12.1       368       101       0.21  

Sound Financial Bancorp, Inc.

  Seattle, WA   SFBC     686       96       38.40       145       13.3       15.8       1.5       69.0       4.31       1.08       9.8       333       110       0.87  

Valley Republic Bancorp

  Bakersfield, CA   VLLX     683       133       33.75       215       15.1       38.4       0.0       53.2       3.38       1.27       9.0       195       76       0.00  

Mission Bancorp

  Bakersfield, CA   MSBC     682       141       80.01       241       12.5       78.7       0.0       47.2       4.33       2.09       8.6       268       85       0.03  

American River Bankshares

  Rancho Cordova, CA   AMRB     675       88       15.06       159       17.1       (0.4     1.3       67.0       3.30       0.77       8.4       306       51       1.36  

State Bank Corp.

  Lake Havasu City, AZ   SBAZ     642       121       14.95       230       15.3       81.9       1.6       61.8       3.80       1.26       9.3       269       65       1.28  

Santa Cruz County Bank

  Santa Cruz, CA   SCZC     635       130       53.45       208       12.4       35.2       0.6       50.5       4.58       1.66       9.8       335       84       0.00  

1st Capital Bank

  Salinas, CA   FISB     610       89       18.80       162       15.9       31.9       0.0       67.5       3.74       0.94       9.0       339       86       0.08  

American Riviera Bank

  Santa Barbara, CA   ARBV     591       86       19.25       166       15.0       10.0       0.0       62.5       4.52       1.05       8.7       410       90       0.02  

Baker Boyer Bancorp

  Walla Walla, WA   BBBK     591       85       66.00       162       13.6       (2.9     4.5       76.8       3.49       1.03       8.9       154       56       0.47  

Summit State Bank

  Santa Rosa, CA   SSBI     586       88       14.55       158       13.7       15.0       3.3       59.9       3.72       1.11       9.6       326       91       0.72  


    Publicly-Traded Western Region Banks With Total Assets $500 Million—$1 Billion  
Financials as of
June 30, 2018 unless
otherwise noted
                Market Data (as of
10/10/2018)
                YTD
Profitability
          Balance Sheet
Ratios¹
       

Company Name

  City, St   Ticker   Total
Assets

($mm)
    Mkt
Cap

($mm)
    Stock
Price

($)
    Price/
Tang.
Book
Value

(%)
    Price/
YTD
Ann.
EPS

(x)
    1 yr
Price
Change

(%)
    Div.
Yield

(%)
    YTD
Eff.
Ratio

(%)
    YTD
NIM

(%)
    YTD
ROAA

(%)
    TCE/
TA

(%)
    CRE
Conc.
Ratio

(%)
    Loan/
Dpts.

(%)
    NPAs/
Assets

(%)
 

CommerceWest Bank

  Irvine, CA   CWBK     550       96       25.37       168       18.1       14.3       2.7       56.3       4.11       0.99       10.5       303       90       0.17  

Bank of Southern California, National Association

  San Diego, CA   BCAL     521       130       15.45       143       19.8       14.4       0.0       61.3       4.21       0.94       14.5       211       94       0.14  

Pacific Enterprise Bancorp

  Irvine, CA   PEBN     509       68       22.00       141       19.5       11.2       0.0       81.2       4.95       0.69       9.5       156       90       0.22  
    High     998       306       —         268       32.5       81.9       4.5       83.6       5.67       2.09       14.5       410       110       2.53  
    Low     509       68       —         128       9.7       (6.1     0.0       47.2       3.30       0.46       7.8       129       51       0.00  
    Mean     748       135       —         180       16.3       22.8       1.2       63.6       4.18       1.14       9.8       275       87       0.44  
    Median     736       130       —         171       15.2       15.4       0.9       62.1       4.21       1.08       9.5       268       90       0.24  

Idaho Independent Bank²

  Coeur d’Alene, ID   IIBK     742       110       14.66       156       15.5       35.1       0.0       69.4       3.97       1.06       9.8       199³       59       0.26³  

Note:

1:

Bank-level financials used where holding company information not available

2:

Preliminary September 30, 2018 financial information, unless otherwise noted

3:

Ratios as of June 30, 2018

Financials not adjusted to reflect pending or recently completed acquisitions. Market cap reflects shares issued in transactions which have closed since June 30, 2018

Source: S&P Global Market Intelligence; excludes targets of announced mergers

(Back To Top)

Section 3: EX-99.2 (EX-99.2)

EX-99.2

Exhibit 99.2

 

Nationwide Bank Deals Announced Between January 1, 2018 and October 10, 2018 with Target Assets Between $500 Million and $1 Billion

 
              Transaction
Information
          Seller Financial
Information
                   

Acquiror

  Target   Annc. Date     Deal
Value

($mm)
    Price/
LTM
EPS

(x)
    Price/
TBVPS

(%)
    Core
Deposit
Prem.

(%)
    Total
Assets

($mm)
    Total
Equity

($mm)
    TCE/
TA

(%)
    LTM
ROAA

(%)
    LTM
ROAE

(%)
    NPAs/
Assets

(%)
 

American National Bankshares Inc. (VA)

  HomeTown Bankshares
Corporation (VA)
    10/1/2018       95.3       27.4       182       11.0       558       52       9.3       0.64       6.9       1.59  

Park National Corporation (OH)

  CAB Financial Corporation
(SC)
    9/13/2018       140.3       28.0       183       12.9       731       79       10.2       0.70       6.3       0.58  

Banner Corporation (WA)

  Skagit Bancorp, Inc. (WA)     7/25/2018       192.4       21.6       240       15.5       922       80       8.7       0.98       11.3       0.36  

ConnectOne Bancorp, Inc. (NJ)

  Greater Hudson Bank (NY)     7/12/2018       76.3       36.3       135       5.7       501       57       11.3       0.41       3.5       1.59  

Northwest Bancshares, Inc. (PA)

  Donegal Financial Services
Corp. (PA)
    6/12/2018       86.1       20.3       174       7.4       577       86       13.8       0.82       5.5       0.32  

Seacoast Banking Corporation of Florida (FL)

  First Green Bancorp, Inc. (FL)     6/11/2018       135.1       35.8       178       13.3       731       77       10.5       0.91       8.1       0.07  

German American Bancorp, Inc. (IN)

  First Security, Inc. (KY)     5/22/2018       103.3       35.5       162       11.1       586       59       9.2       0.48       5.0       2.04  

Stifel Financial Corp. (MO)

  Business Bancshares, Inc.
(MO)
    5/10/2018       120.8       27.2       173       16.2       619       74       12.0       0.86       7.3       1.03  

First Interstate BancSystem, Inc. (MT)

  Northwest Bancorporation,
Inc. (WA)
    4/25/2018       155.6       28.8       219       13.9       827       82       8.6       0.70       7.0       0.64  

Private Investor—Gaylon Lawrence Jr. (-)

  Volunteer State Bancshares,
Inc. (TN)
    4/25/2018       127.5       28.1       234       20.3       622       61       9.8       1.50       14.5       1.39  

National Commerce Corporation (AL)

  Landmark Bancshares, Inc.
(GA)
    4/24/2018       115.4       16.0       222       17.7       595       70       10.8       1.36       11.9       1.11  

RBB Bancorp (CA)

  First American International
Corp. (NY)
    4/23/2018       116.8       19.2       177       12.1       873       79       7.3       0.95       10.6       0.30  

BancorpSouth Bank (MS)

  Icon Capital Corporation (TX)     4/18/2018       132.7       19.2       198       13.3       794       75       9.4       1.00       10.6       2.52  

QCR Holdings, Inc. (IL)

  Springfield Bancshares, Inc.
(MO)
    4/18/2018       84.3       17.4       184       13.6       563       49       8.6       1.56       17.3       0.18  

Triumph Bancorp, Inc. (TX)

  First Bancorp of Durango,
Inc. (IL)
    4/9/2018       134.5       36.4       203       12.7       634       56       8.5       0.94       9.3       1.22  

HarborOne Bancorp, Inc. (MHC) (MA)

  Coastway Bancorp, Inc. (RI)     3/14/2018       125.6       44.1       174       14.2       739       71       9.7       0.39       3.7       1.94  

Civista Bancshares, Inc. (OH)

  United Community Bancorp
(IN)
    3/12/2018       118.5       34.0       165       10.3       546       72       12.7       0.61       4.6       0.39  

First Choice Bancorp (CA)

  Pacific Commerce Bancorp
(CA)
    2/26/2018       114.4       23.5       194       15.5       536       64       11.3       0.88       7.4       0.20  


Nationwide Bank Deals Announced Between January 1, 2018 and October 10, 2018 with Target Assets Between $500 Million and $1 Billion

 
                Transaction
Information
          Seller Financial
Information
                   

Acquiror

  Target     Annc. Date     Deal
Value

($mm)
    Price/
LTM
EPS

(x)
    Price/
TBVPS

(%)
    Core
Deposit
Prem.

(%)
    Total
Assets

($mm)
    Total
Equity

($mm)
    TCE/
TA

(%)
    LTM
ROAA

(%)
    LTM
ROAE

(%)
    NPAs/
Assets

(%)
 

Mechanics Bank (CA)

   
Learner Financial
Corporation (CA)
 
 
    2/12/2018       124.9       37.6       170       9.3       692       69       9.9       0.56       5.6       0.79  

Mid Penn Bancorp, Inc. (PA)

   
First Priority Financial Corp.
(PA)
 
 
    1/16/2018       90.7       32.6       194       11.2       612       50       7.3       0.52       6.1       0.37  
    (20 Transactions)       High       192.4       44.1       240       20.3       922       86       13.8       1.56       17.3       2.52  
      Low       76.3       16.0       135       5.7       501       49       7.3       0.39       3.5       0.07  
      Mean       119.5       28.4       188       12.9       663       68       9.9       0.84       8.1       0.93  
      Median       119.6       28.0       182       13.1       621       71       9.7       0.84       7.2       0.72  
     

Idaho
Independent
Bank¹
 
 
 
    183.1       34.3       245       18.4²       742       72       9.8       0.74       7.7       0.26 4  
              18.3³              

Note:

1:

Preliminary September 30, 2018 financial information, unless otherwise noted

2:

Core deposits defined as total deposits less time deposits greater than $100,000; assumes percentage of core deposits from June 30, 2018 financials applied to September 30, 2018 total deposits

3:

Core deposits defined as total deposits less time deposits greater than $250,000; assumes percentage of core deposits from June 30, 2018 financials applied to September 30, 2018 total deposits

4:

Ratio as of June 30, 2018

Excludes transactions where deal value was not reported

Source: S&P Global Market Intelligence; data as of October 10, 2018

(Back To Top)

Section 4: EX-99.3 (EX-99.3)

EX-99.3

Exhibit 99.3

 

Exchange-Traded Nationwide Banks With Total Assets $10 Billion—$15 Billion¹  

Financials as of June 30, 2018 unless otherwise
noted

            Market Data (as of
10/10/2018)
                            YTD
Profitability
          Balance Sheet
Ratios
       

Company Name

  City, St   Ticker   Total
Assets

($mm)
    Mkt
Cap

($mm)
    Stock
Price

($)
    Price/
Tang.
Book
Value

(%)
    Price/
YTD
Ann.
EPS

(x)
    Price/
Est.
2018
EPS

(x)
    Price/
Est.
2019
EPS

(x)
    Div.
Yield

(%)
    1 Yr
Price
Change

(%)
    YTD
Eff.
Ratio

(%)
    YTD
NIM

(%)
    YTD
ROAA

(%)
    TCE/
TA
(%)
    CRE
Conc.
Ratio

(%)
    Loan/
Dpts

(%)
    NP
As/
Assets

(%)
 

Home BancShares, Inc.

  Conway, AR   HOMB     14,924       3,794       21.72       289       12.6       12.3       11.3       2.2       (15.6     37       4.43       2.09       9.4       286       102       0.49  

Hope Bancorp, Inc.

  Los Angeles, CA   HOPE     14,870       2,099       16.15       149       10.9       11.1       10.5       3.5       (10.3     49       3.61       1.37       9.9       348       100       1.02  

First Midwest Bancorp, Inc.

  Chicago, IL   FMBI     14,818       2,746       26.62       243       21.8       16.3       13.0       1.7       13.0       59       3.82       0.88       8.0       210       95       0.46  

South State Corporation

  Columbia, SC   SSB     14,566       2,954       80.50       232       17.9       14.2       13.5       1.7       (13.3     56       4.20       1.14       9.5       215       93       0.29  

First Financial Bancorp.

  Cincinnati, OH   FFBC     13,920       2,860       29.21       265       17.4       13.2       12.4       2.7       10.0       53       3.99       1.17       8.4       219       88       0.46  

Hilltop Holdings Inc.

  Dallas, TX   HTH     13,689       1,891       19.99       116       16.7       13.3       11.6       1.4       (24.0     88       3.47       0.89       12.1       148       109       0.34  

Trustmark Corporation

  Jackson, MS   TRMK     13,525       2,294       33.92       193       15.0       15.1       14.7       2.7       0.2       66       3.49       1.13       9.1       205       82       0.76  

Union Bankshares Corporation

  Richmond, VA   UBSH     13,066       2,541       38.51       232       19.9       15.1       13.2       2.4       7.9       56       3.73       0.98       8.9       309       95       0.38  

Columbia Banking System, Inc.

  Tacoma, WA   COLB     12,629       2,792       38.10       243       17.0       15.4       14.1       2.7       (9.6     55       4.26       1.30       9.7       191       81       0.73  

United Community Banks, Inc.

  Blairsville, GA   UCBI     12,386       2,165       27.36       206       14.1       12.8       11.6       2.2       (4.5     55       3.82       1.27       8.7       199       83       0.58  

Great Western Bancorp, Inc.

  Sioux Falls, SD   GWB     12,009       2,467       41.87       231       10.7       14.1       12.5       2.4       2.5       47       3.92       1.31       9.5       238       98       1.42  

International Bancshares Corporation

  Laredo, TX   IBOC     11,989       2,828       42.76       177       13.3       —         —         2.0       1.7       51       3.77       1.80       13.6       180       74       0.77  

Berkshire Hills Bancorp, Inc.

  Boston, MA   BHLB     11,902       1,842       40.55       200       15.7       14.6       13.4       2.2       3.7       59       3.44       1.02       8.1       226       100       0.31  

Glacier Bancorp, Inc.

  Kalispell, MT   GBCI     11,898       3,703       43.81       327       21.9       19.5       17.9       2.4       16.1       55       4.11       1.50       9.8       200       85       0.83  

Cadence Bancorporation

  Houston, TX   CADE     11,306       2,079       24.86       193       12.0       12.3       10.7       2.4       8.9       49       3.62       1.57       9.8       94       97       0.58  

Heartland Financial USA, Inc.

  Dubuque, IA   HTLF     11,302       1,981       57.53       244       17.8       15.2       13.3       1.0       13.9       67       4.22       1.00       7.5       188       79       0.61  

Ameris Bancorp

  Moultrie, GA   ABCB     11,191       2,131       44.86       262       24.4       13.6       10.5       0.9       (12.1     57       3.90       0.88       7.7       280       98       0.86  

Customers Bancorp, Inc.

  Wyomissing, PA   CUBI     11,093       737       23.28       105       9.0       8.7       7.5       0.0       (29.6     61       2.63       0.91       6.3       440       125       0.35  

WesBanco, Inc.

  Wheeling, WV   WSBC     10,947       2,348       43.03       231       14.6       13.9       13.1       2.7       1.3       54       3.39       1.28       8.4       210       89       0.39  

TowneBank

  Portsmouth, VA   TOWN     10,832       2,184       30.51       226       18.2       15.2       13.9       2.1       (12.5     63       3.60       1.22       9.4       250       102       0.47  

Community Bank System, Inc.

  De Witt, NY   CBU     10,633       3,134       61.33       353       18.6       19.2       19.0       2.5       9.1       57       3.69       1.58       8.6       82       73       0.26  

Renasant Corporation

  Tupelo, MS   RNST     10,544       2,334       39.73       212       13.9       13.1       11.7       2.0       (7.9     60       4.14       1.38       9.3       242       96       0.38  

CenterState Bank Corporation

  Winter Haven, FL   CSFL     10,537       2,616       27.38       261       16.9       13.5       12.2       1.5       0.1       51       4.41       1.32       8.9       282       86       0.37  

Banner Corporation

  Walla Walla, WA   BANR     10,379       1,964       60.62       198       16.0       16.2       14.4       2.5       (2.1     66       4.34       1.20       9.8       286       91       0.27  

Banc of California, Inc.

  Santa Ana, CA   BANC     10,319       945       18.65       140       37.3       28.4       15.6       2.8       (9.5     75       2.97       0.46       6.6       291       99       0.28  


Exchange-Traded Nationwide Banks With Total Assets $10 Billion—$15 Billion¹  

Financials as of June 30, 2018 unless otherwise
noted

            Market Data (as of
10/10/2018)
                            YTD
Profitability
          Balance Sheet
Ratios
       

Company Name

  City, St   Ticker   Total
Assets

($mm)
    Mkt
Cap

($mm)
    Stock
Price

($)
    Price/
Tang.
Book
Value

(%)
    Price/
YTD
Ann.
EPS

(x)
    Price/
Est.
2018
EPS

(x)
    Price/
Est.
2019
EPS

(x)
    Div.
Yield

(%)
    1 Yr
Price
Change

(%)
    YTD
Eff.
Ratio

(%)
    YTD
NIM

(%)
    YTD
ROAA

(%)
    TCE/
TA
(%)
    CRE
Conc.
Ratio

(%)
    Loan/
Dpts

(%)
    NP
As/
Assets

(%)
 

Independent Bank Group, Inc.

  McKinney, TX   IBTX     10,017       2,024       66.40       263       16.3       14.4       12.1       0.8       7.4       49       4.01       1.32       8.3       394       102       0.17  
    High     14,924       3,794       —         353       37.3       28.4       19.0       3.5       16.1       88       4.43       2.09       13.6       440       125       1.42  
    Low     10,017       737       —         105       9.0       8.7       7.5       0.0       (29.6     37       2.63       0.46       6.3       82       73       0.17  
    Mean     12,127       2,364       —         223       16.9       14.8       13.0       2.0       (2.1     57       3.81       1.23       9.1       239       93       0.53  
    Median     11,900       2,314       —         231       16.5       14.2       13.0       2.2       0.2       56       3.82       1.24       9.0       223       95       0.46  

First Interstate BancSystem, Inc.

  Billings, MT   FIBK     12,236       2,781       45.90       278       16.5       15.6       14.0       2.4       18.1       59       3.78       1.29       8.2       185       78       0.75  

Note:

1:

First BanCorp. (NYSE: FBP) removed due to elevated NPAs / Assets of 8.19%

Financials not adjusted to reflect pending or recently completed acquisitions. Market cap reflects shares issued in transactions which have closed since June 30, 2018

Source: S&P Global Market Intelligence, excludes targets of announced mergers

(Back To Top)