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Commerce Bancorp, Inc. Acquisition History

Buyer: Commerce Bancorp, Inc., Cherry Hill, NJ
Seller: Community First Banking Company, Tinton Falls, NJ

 
Transaction Summary
Commerce Bancorp, Inc. has acquired Community First Banking Company for approximately $67.7 million in common stock. Community First is the parent holding company of Tinton Falls State Bank, headquartered in Tinton Falls, NJ. Tinton Falls State Bank is a $190 million asset community bank serving Monmouth County, NJ through seven branches. Tinton Falls State Bank will become the foundation for the Monmouth region of Commerce Bancorp, which announced an aggressive 15-branch expansion program for Monmouth County earlier this year. The acquisition price will be $29.6 for each share of Community First common stock. Commerce expects the transaction to be accretive in 1999, its first year.
 
Transaction Data
Announcement Date 08/13/98   Completion Date 01/15/99
Accounting Type Pooling   Transaction Status Completed
Consideration Type Common Stock   Transaction Revised? No
Reason for Transaction In-market expansion   Revision Date N/A
Percent of Target Common Shrs Acquired 100   Merger of Equals? No
Number of Target Common Shrs Acquired 2,114,621   Hostile/Unsolicited? No
Number of Buyer Common Shrs Issued 1,361,815   Transaction Started as Rumor? No
Number of Buyer Preferred Shrs Issued N/A   Termination Fee ($000) N/A
Buyer/Target Exchange Ratio(s)   Goodwill Created ($000) 55,412.00
Common Stock:Common Stock .6440   Core Deposit Intangibles Created ($000) N/A
Common Stock:Preferred Stock N/A   Target's Current Year EPS Estimate N/A
Preferred Stock:Common Stock N/A   Target's Next Year EPS Estimate N/A
Preferred Stock:Preferred Stock N/A   Target's Common Stock Options 226,936
Payment In: (At Announcement Date)   Average Strike Price of Options ($) 7.51
Cash ($000) 0   Target's Conv Pref Equity ($000) N/A
Common Stock ($000) 59,209   Pref Eqty Equiv Convert Cmn Shrs N/A
Debt ($000) 0   Target's Convertible Debt ($000) N/A
Convertible Debt ($000) 0   Conv Debt Equiv Convert Cmn Shrs N/A
Pref Stock ($000) 0   Lock-up Agreement? No
Convertible Preferred Stock ($000) 0   Number of Shares Under Option N/A
Other Consider ($000) 0   Percent of Outstanding Shares N/A
Earnout Consideration Value ($000) N/A   Exercise Price per Share ($) N/A
Collar/Cuff? Yes   Lock-Up Agreement Description: N/A
Collar Cuff Agreement Description: If the avg price is above $45.6875 the exchange ratio is a minimum .613 and if the avg price is below $39.6875 the maximum exchange ratio is .706 and if it is between $39.6875 and $45.6875 then divide $28 by the avg stock price.      
 
Cost Savings
N/A
 
Transaction Pricing
At Announcement Date
At Completion Date
Total Purchase Price ($000) 62,749 67,661
Payment in Common Stock ($000) 59,209 62,643
Purchase Price Per Share ($) 28.00 29.62
Price to Equity (x) 4.58 5.11
Price to Tangible Equity(x) 4.58 5.11
Price to LTM Net Inc. (x) 27.32 126.04
Price/Current Yr Earn Est(x) N/A N/A
Price to Next Yr Earn Est(x) N/A N/A
Price to Assets (%) 31.71 31.08
Price to Deposits (%) 34.31 34.67
Premium to Core Deposits(%) 29.39 30.74
 
Transaction Advisers
Financial Advisers: Sandler O'Neill & Partners, L.P. yes
Legal Advisers: Blank Rome Comisky & McCauley yes
Financial Advisers: Berwind Financial Group, L.P. yes
Legal Advisers: Pitney Hardin LLP yes
 
Target Performance Data
Company: Community First Banking Company
Institution Type Holding Co
Regulatory ID Number 2403623
Ticker CFST
CUSIP 20390610
Stock Exchange Over The Counter
Primary SIC Code 6022
Street Address 656 Shrewsbury Ave
Phone Number (732) 922-5900
# of Employees 106
# of Branches 7
Nation Northeast
Region United States
Financial Data Source Regulatory Filings
 
Financial Data
 
Prior to Announcement
Prior to Completion
 
06/30/98
03/31/98
12/31/97
12/31/98
Total Assets ($000) 186,730 176,318 165,297 201,524
Total Deposits ($000) 172,582 162,248 152,021 180,703
Total Core Deposits ($000) 157,452 145,806 138,438 163,932
Total Equity ($000) 12,935 12,505 12,006 12,249
Intangible Assets ($000) .00 .00 .00 .00
Tangible Equity Capital ($000) 12,935 12,505 12,006 12,249
LTM Net Income ($000) 2,167 1,987 1,825 497.00
Shares Outstanding N/A N/A N/A N/A
Total Equity/Assets (%) 6.93 7.09 7.26 6.08
Tangible Equity/Assets 6.93 7.09 7.26 6.08
Book Value Per Share ($) N/A N/A N/A N/A
LTM Earnings Per Share ($) N/A N/A N/A N/A
NPA/Total Assets (%) .54 .43 .86 .25
LLR/NPL (%) 129.61 152.55 74.12 420.40
YTD Net Income ($000) 1,133 524.00 1,825 497.00
Annualized ROA 1.29 1.23 1.22 .27
Annualized ROE 18.15 17.10 16.55 3.92
LTM Operating Expense/AA 4.47 4.22 4.55 6.08
LTM Noninterest Income/AA .79 .78 .83 .78
LTM Efficiency Ratio (%) 66.52 66.62 67.16 80.91
 
Data Provided by Highline Financial LLC.