Investment Banking - Citizens & Northern Corporation
Transactions | Banking
Client: Citizens & Northern Corporation
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor
Citizens & Northern Corporation Acquires Covenant Financial, Inc.
- Citizens & Northern Corporation (CZNC), headquartered in Wellsboro, PA, is the bank holding company for C&N Bank, which operates 27 banking offices and three loan production offices principally located in North Central and Southeastern PA. As of September 30, 2019, CZNC had total assets of $1.6 billion, $1.1 billion in loans, and $1.3 billion in deposits.
- Covenant Financial, Inc. (“Covenant”), headquartered in Doylestown, PA, is the bank holding company for Covenant Bank, which operates two community bank offices located in Bucks and Chester Counties, respectively. As of September 30, 2019, Covenant had total assets of $512 million, $417 million in loans, and $380 million in deposits.
- Covenant shareholders will elect to receive either 0.6212 shares of CZNC common stock or $16.50 in cash for each share of Covenant common stock owned, subject to proration to ensure that, overall, 25% of the Covenant shares will be converted into cash and 75% of the Covenant shares will be converted into CZNC stock.
- Based on CZNC’s closing price of $27.09 on December 17, 2019, the aggregate implied transaction value is approximately $77.2 million. This deal value equates to approximately 178.4% of Covenant’s tangible book value per share as of September 30, 2019 and 18.3x Covenant’s trailing 12-month EPS through September 30, 2019.
- The transaction closed July 1, 2020.
- Boenning served as financial advisor and rendered a fairness opinion to Citizens & Northern Corporation.