Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Charter Financial Corp. (MHC) (Click for buyer financial information)
Target:  EBA Bancshares, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 9/10/02   Announced Deal Value ($M) 8.4
Status Completed   Announced Deal Value Per Share ($) 17.00
Completion Date 2/21/03      
 
Deal Summary
Charter Financial, which completed a partial conversion late last year, has agreed to acquire EBA Bancshares and unit Eagle Bank of Alabama. Charter currently operates five branches along the I-85 corridor, with two branches in western Georgia and three in Alabama. EBA has three branches in Alabama and will raise Charter to eighth place in the Auburn/Opelika Fed market with a 6.26% share of $1.1B in deposits. Announcement ratios based on Dec. 2001 small parent equity of $4,999,000 and LTM NI of $471,000. Completion ratios based on June 30 small parent equity of $5,148,000 and LTM NI of $320,000.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 168.96 164.07
Price / Tangible Book (%) 168.96 164.07
Price / LTM EPS (x) 17.93 26.40
Price / Deposits (%) 13.15 13.25
Price / Assets (%) 11.07 11.15
Tang Book Premium / Core Deposits (%) 7.65 7.30


Deal Terms

Description of Consideration
Charter Financial paid $17.00 in cash for each share of EBA. Seller's financials are for Eagle Bank of Alabama.
Accounting Method NA   Lockup Agreement No
In-State Transaction? No   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Partial Overlap   Shares Under Option NA
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) 300  
         
Consideration Breakout
Cash ($M)   8.4
Common Stock ($M)   0
Common Shares Issued   0
Preferred Stock ($M)   0
Preferred Shares Issued   0
Debt ($M)   0
Other ($M)   0

Deal Advisers

Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes RP Financial LC
 
Seller Yes DD&F Consulting Group
Ferguson & Co.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Thacher Proffitt & Wood
 
Seller Yes Bradley Arant Boult Cummings

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