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Commerce Bancorp, Inc. Acquisition History

Buyer: Commerce Bancorp, Inc., Cherry Hill, NJ
Seller: Independence Bancorp, Inc., Ramsey, NJ

 
Transaction Summary
Commerce Bancorp has acquired Independence Bancorp, Ramsey, NJ for $83.9 million in common stock. The stock swap will be based on an exchange ratio of .9818 shares of Commerce stock for each share of Independence stock. Independence has eight branches in northern New Jersey. The transaction was completed on January 21, 1997.
 
Transaction Data
Announcement Date 10/14/96   Completion Date 01/21/97
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 2,839,409   Hostile/Unsolicited? No
Number of Buyer Common Shrs Issued 2,787,590   Transaction Started as Rumor? No
Number of Buyer Preferred Shrs Issued 0   Termination Fee ($000) N/A
Buyer/Target Exchange Ratio(s)   Goodwill Created ($000) 56,334.00
Common Stock:Common Stock .9818   Core Deposit Intangibles Created ($000) N/A
Common Stock:Preferred Stock N/A   Target's Current Year EPS Estimate N/A
Preferred Stock:Common Stock N/A   Target's Next Year EPS Estimate N/A
Preferred Stock:Preferred Stock N/A   Target's Common Stock Options 100,888
Payment In: (At Announcement Date)   Average Strike Price of Options ($) N/A
Cash ($000) 0   Target's Conv Pref Equity ($000) N/A
Common Stock ($000) 76,000   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? Yes
Convertible Preferred Stock ($000) 0   Number of Shares Under Option 564,910
Other Consider ($000) 0   Percent of Outstanding Shares 20
Earnout Consideration Value ($000) N/A   Exercise Price per Share ($) 21.00
Collar/Cuff? No   Lock-Up Agreement Description: Commerce has the option to purchase up to 19.9% of Indepencence's common stock.
Collar Cuff Agreement Description: N/A      
 
Cost Savings
N/A
 
Transaction Pricing
At Announcement Date
At Completion Date
Total Purchase Price ($000) 76,000 83,900
Payment in Common Stock ($000) 76,000 83,900
Purchase Price Per Share ($) 25.00 29.58
Price to Equity (x) 2.76 3.04
Price to Tangible Equity(x) 2.76 3.21
Price to LTM Net Inc. (x) 20.30 59.93
Price/Current Yr Earn Est(x) N/A N/A
Price to Next Yr Earn Est(x) N/A N/A
Price to Assets (%) 20.56 22.24
Price to Deposits (%) 22.38 24.12
Premium to Core Deposits(%) 15.35 17.69
 
Transaction Advisers
Financial Advisers: Wheat First Securities Inc. yes
Legal Advisers: Blank Rome Comisky & McCauley no
Financial Advisers: McConnell, Budd & Romano, Inc. yes
Legal Advisers: N/A N/A
 
Target Performance Data
Company: Independence Bancorp, Inc.
Institution Type Holding Co
Regulatory ID Number 1048942
Ticker IBNJ
CUSIP 45337710
Stock Exchange National Market System
Primary SIC Code 6022
Street Address 1100 Lake Street
Phone Number (201) 825-1000
# of Employees 181
# of Branches 6
Nation Northeast
Region United States
Financial Data Source Regulatory Filings
 
Financial Data
 
Prior to Announcement
Prior to Completion
 
09/30/96
06/30/96
12/31/95
12/31/96
Total Assets ($000) 369,561 358,209 325,187 377,315
Total Deposits ($000) 339,535 336,412 304,346 347,826
Total Core Deposits ($000) 315,531 314,665 291,268 326,424
Total Equity ($000) 27,566 19,709 18,551 26,171
Intangible Assets ($000) .00 .00 .00 .00
Tangible Equity Capital ($000) 27,566 19,709 18,551 26,171
LTM Net Income ($000) 3,744 3,505 3,050 1,400
Shares Outstanding 2,837,789 1,321,356 1,312,748 2,839,409
Total Equity/Assets (%) 7.46 5.50 5.70 6.94
Tangible Equity/Assets 7.46 5.50 5.70 6.94
Book Value Per Share ($) 9.71 14.92 14.13 9.22
LTM Earnings Per Share ($) 1.32 2.65 2.32 .49
NPA/Total Assets (%) .84 1.04 .92 .60
LLR/NPL (%) 117.55 98.11 153.77 170.15
YTD Net Income ($000) 2,771 1,701 3,050 1,400
Annualized ROA 1.00 1.00 1.00 .37
Annualized ROE 18.53 17.93 18.34 5.21
LTM Operating Expense/AA 3.72 3.94 4.11 4.32
LTM Noninterest Income/AA .87 .95 .91 .89
LTM Efficiency Ratio (%) 71.19 72.04 71.78 79.58
 
Data Provided by Highline Financial LLC.