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Commerce Bancorp, Inc. Acquisition History

Buyer: Commerce Bancorp, Inc., Cherry Hill, NJ
Seller: Prestige Financial Corp., Flemington, NJ

 
Transaction Summary
Commerce Bancorp, Inc., has acquired Prestige Financial Corp., for approximately $81.9 million or $18.26 a share in common stock. Prestige State Bank, a subsidiary of Prestige Financial Corp., has $310 million in assets and eight branches serving Hunterdon and Somerset Counties. Prestige currently has a leading market share in Hunterson County. Upon completion of the Prestige acquisition and the acquisition of Tinton Falls State Bank, Commerce expects to have nearly $5.1 billion in assets and a network of over 100 branches. Commerce expects the transaction to be accretive to earnings in 1999. Prestige State Bank will become Commerce Bank/Central, a subsidiary of Commerce Bancorp, Inc. Commerce Bank/Central expects to expand through the opening of an additional 15 to 20 branches over the next three years.
 
Transaction Data
Announcement Date 09/17/98   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 4,262,830   Hostile/Unsolicited? No
Number of Buyer Common Shrs Issued 1,692,343   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) 60,213.00
Common Stock:Common Stock .3970   Core Deposit Intangibles Created ($000) N/A
Common Stock:Preferred Stock N/A   Target's Current Year EPS Estimate N/A
Preferred Stock:Common Stock N/A   Target's Next Year EPS Estimate N/A
Preferred Stock:Preferred Stock N/A   Target's Common Stock Options 347,398
Payment In: (At Announcement Date)   Average Strike Price of Options ($) 6.70
Cash ($000) 0   Target's Conv Pref Equity ($000) N/A
Common Stock ($000) 69,603   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 of CBH common stock is >$43 then the exchange ratio is .378 or if it is <$37 then the exchange ratio will be .439, if it between $37 and $43 then the exchange ratio will be $16.25 divided by the average price.      
 
Cost Savings
N/A
 
Transaction Pricing
At Announcement Date
At Completion Date
Total Purchase Price ($000) 72,920 81,991
Payment in Common Stock ($000) 69,603 77,847
Purchase Price Per Share ($) 16.25 18.26
Price to Equity (x) 3.28 3.57
Price to Tangible Equity(x) 3.28 3.57
Price to LTM Net Inc. (x) 23.64 25.26
Price/Current Yr Earn Est(x) N/A N/A
Price to Next Yr Earn Est(x) N/A N/A
Price to Assets (%) 22.42 24.18
Price to Deposits (%) 24.20 26.08
Premium to Core Deposits(%) 18.65 N/A
 
Transaction Advisers
Financial Advisers: N/A N/A
Legal Advisers: Blank Rome Comisky & McCauley yes
Financial Advisers: Endicott Financial Advisors yes
Legal Advisers: Rothgerber, Johnson & Lyons, LLP yes
 
Target Performance Data
Company: Prestige Financial Corp.
Institution Type Holding Co
Regulatory ID Number 2022930
Ticker PRFN
CUSIP 74090410
Stock Exchange National Market System
Primary SIC Code 6022
Street Address 1 Royal Road
Phone Number (908) 806-6200
# of Employees 87
# of Branches 6
Nation Northeast
Region United States
Financial Data Source SEC Filings
 
Financial Data
 
Prior to Announcement
Prior to Completion
 
06/30/98
03/31/98
12/31/97
09/30/98
Total Assets ($000) 310,399 292,734 283,587 321,907
Total Deposits ($000) 287,616 270,841 263,156 298,443
Total Core Deposits ($000) 259,613 241,694 233,827 N/A
Total Equity ($000) 21,189 20,141 18,889 21,778
Intangible Assets ($000) N/A 11.00 11.00 N/A
Tangible Equity Capital ($000) 21,189 20,141 18,889 21,778
LTM Net Income ($000) 2,944 2,829 2,703 3,082
Shares Outstanding 4,250,000 4,109,000 4,109,000 4,263,000
Total Equity/Assets (%) 6.83 6.88 6.66 6.77
Tangible Equity/Assets 6.83 6.88 6.66 6.77
Book Value Per Share ($) 4.99 4.90 4.60 5.11
LTM Earnings Per Share ($) .69 .69 .66 .72
NPA/Total Assets (%) .45 .51 .38 .47
LLR/NPL (%) 145.57 123.47 171.14 144.17
YTD Net Income ($000) 1,650 828.00 2,703 2,499
Annualized ROA 1.12 1.15 1.06 1.10
Annualized ROE 16.43 16.97 15.57 16.22
LTM Operating Expense/AA 3.05 3.06 3.32 3.04
LTM Noninterest Income/AA .93 .92 .98 .94
LTM Efficiency Ratio (%) 64.93 64.95 64.54 64.45
 
Data Provided by Highline Financial LLC.