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Commerce Bancorp, Inc. Acquisition History

Buyer: Commerce Bancorp, Inc., Cherry Hill, NJ
Seller: Palm Beach County Bank, West Palm Beach, FL

 
Transaction Summary
Commerce Bancorp, Inc., has acquired Palm Beach County Bank for approximately $121 million in common stock. The specific terms of the transaction called for Palm Beach shareholders to receive 1.9835 shares of Commerce Bancorp, Inc., common stock. In addition a dividend of $4.3 million was paid out to Palm Beach shareholders at closing. This transaction expanded Commerce Bank into the vibrant South Florida market and will be the foundation for an aggressive branch expansion strategy in Florida. Commerce Bank used this entry to add approximately 150 branches in Florida. The expansion was planned for the Florida Counties of Martin, Palm Beach, Miami-Dade and Broward. Additionally, the aggressive expansion plan allowed all current management and employees of Palm Beach County Bank to retain their jobs while adding 500 new positions over the next 18 months. All seven current Palm Beach County Bank branches will be converted to the Commerce Bank name effective January 1, 2006. The transaction completed on December 5, 2005.
 
Transaction Data
Announcement Date 07/25/05   Completion Date 12/05/05
Accounting Type Purchase   Transaction Status Completed
Consideration Type Common Stock, Other   Transaction Revised? No
Reason for Transaction Entry into new market   Revision Date N/A
Percent of Target Common Shrs Acquired 100   Merger of Equals? No
Number of Target Common Shrs Acquired 1,676,575   Hostile/Unsolicited? No
Number of Buyer Common Shrs Issued 3,325,486   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) 94,371.00
Common Stock:Common Stock 1.9835   Core Deposit Intangibles Created ($000) N/A
Common Stock:Preferred Stock N/A   Target's Current Year EPS Estimate N/A
Preferred Stock:Common Stock N/A   Target's Next Year EPS Estimate N/A
Preferred Stock:Preferred Stock N/A   Target's Common Stock Options 46,250
Payment In: (At Announcement Date)   Average Strike Price of Options ($) 11.54
Cash ($000) 0   Target's Conv Pref Equity ($000) N/A
Common Stock ($000) 110,472   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) 4,300   Percent of Outstanding Shares N/A
Earnout Consideration Value ($000) N/A   Exercise Price per Share ($) N/A
Collar/Cuff? No   Lock-Up Agreement Description: N/A
Collar Cuff Agreement Description: N/A      
 
Cost Savings
N/A
 
Transaction Pricing
At Announcement Date
At Completion Date
Total Purchase Price ($000) 117,286 121,079
Payment in Common Stock ($000) 110,472 114,164
Purchase Price Per Share ($) 65.89 68.09
Price to Equity (x) 4.55 4.44
Price to Tangible Equity(x) 4.55 4.44
Price to LTM Net Inc. (x) 25.16 21.68
Price/Current Yr Earn Est(x) N/A N/A
Price to Next Yr Earn Est(x) N/A N/A
Price to Assets (%) 32.83 31.74
Price to Deposits (%) 43.86 41.39
Premium to Core Deposits(%) 39.88 38.36
 
Transaction Advisers
Financial Advisers: Sandler O'Neill & Partners, L.P. yes
Legal Advisers: Blank Rome LLP yes
Financial Advisers: SunTrust Robinson Humphrey yes
Legal Advisers: Akerman, Senterfitt, & Eidson, P.A. yes
 
Target Performance Data
Company: Palm Beach County Bank
Institution Type Bank
Regulatory ID Number 35211
Ticker N/A
CUSIP N/A
Stock Exchange N/A
Primary SIC Code N/A
Street Address 2130 Centrepark West Drive
Phone Number (561) 684-5515
# of Employees 71
# of Branches 7
Nation Southeast
Region United States
Financial Data Source Regulatory Filings
 
Financial Data
 
Prior to Announcement
Prior to Completion
 
06/30/05
03/31/05
12/31/04
09/30/05
Total Assets ($000) 349,602 326,609 306,527 373,279
Total Deposits ($000) 261,703 248,064 236,890 286,216
Total Core Deposits ($000) 224,521 222,167 205,369 239,213
Total Equity ($000) 25,241 23,944 23,323 26,708
Intangible Assets ($000) .00 .00 .00 .00
Tangible Equity Capital ($000) 25,241 23,944 23,323 26,708
LTM Net Income ($000) 4,561 3,680 3,031 5,464
Shares Outstanding N/A N/A N/A N/A
Total Equity/Assets (%) 7.22 7.33 7.61 7.15
Tangible Equity/Assets 7.22 7.33 7.61 7.15
Book Value Per Share ($) N/A N/A N/A N/A
LTM Earnings Per Share ($) N/A N/A N/A N/A
NPA/Total Assets (%) .01 .00 .00 .00
LLR/NPL (%) 4,962.79 N/A N/A N/A
YTD Net Income ($000) 2,814 1,239 3,031 4,489
Annualized ROA 1.72 1.57 1.23 1.77
Annualized ROE 23.29 20.97 17.12 24.13
LTM Operating Expense/AA 2.11 2.14 2.69 2.05
LTM Noninterest Income/AA .13 .16 .22 .10
LTM Efficiency Ratio (%) 57.19 61.11 64.97 53.07
 
Data Provided by Highline Financial LLC.