Heritage Bank of Commerce
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Mergers & Acquisitions
M&A History<< Return to Mergers & Acquisitions
Deal Overview
Buyer: Heritage Commerce Corp
Actual Acquirer: Heritage Bank of Commerce
Target: United American Bank
Deal Type: Bank & Thrift Company
Agreement Date1/10/2018
Announcement Date1/11/2018
Announced Deal Value ($M)45.25
StatusCompleted
Completion Date5/4/2018
Announced Deal Value Per Share ($)34.65
Consideration Breakout
Cash ($M)9.1
Common Stock ($M)46.9
Common Stock Issued2,826,032
Deal Pricing Ratios
 AnnouncementCompletion
Price / Book (%)210.4210.6
Price / Tangible Book (%)210.4210.6
Price / Earnings (x)5.68.6
Price / Deposits (%)14.8916.37
Price / Assets (%)13.4514.68
Tangible Book Premium/ Deposits (%)8.929.73
Deal Terms
Description of Consideration
Heritage Commerce Corp exchanged 2.1644 shares of its common stock for each of the outstanding common and preferred stock of United American Bank. Heritage Commerce Corp. also redeemed United American Bank’s Series A Preferred Stock and the Series B Preferred Stock.
Accounting MethodAcquisition
In-State Transaction?Yes
Merger of Equals?No
Geographic Expansion?Market Expansion
Goodwill Generated ($000)25,594
Estimated Cost Savings (%)45.00
Estimated Cost Savings ($000)3,660
Est. Restructuring Charges ($000)7,500
Maximum Termination Fee ($000)2,000
Minimum Termination Fee ($000)0
Exchange Ratio (Common For Common)2.164400
Exchange Ratio (Common For Preferred)NA
Exchange Ratio (Preferred For Common)NA
Exchange Ratio (Preferred For Preferred)NA
Lockup AgreementNo
Strike Price ($)NA
% of Shares OutstandingNA
Shares Under OptionNA
Core Deposit Intangibles ($000)4,771
Additional Deal Information
Post-Completion
Year
Deal
Accretive?
Earnings
Accretion(%)
Earnings
Accretion($)
Est. Cost
Savings(%)
Est. Cost
Savings($000)
1AccretiveNANANANA
2Accretive2.30NANANA
Deal Advisers - Financial Advisers
Party AdvisedAdviser Hired?Firm Name
BuyerYesKeefe Bruyette & Woods Inc.
SellerYesSandler O'Neill & Partners LP

Deal Advisers - Legal Counsel
Party AdvisedAdviser Hired?Firm Name
BuyerYesBuchalter, A Professional Corp
SellerYesSheppard Mullin Richter

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