Investment Banking - Community Bancorp, Inc.
Transactions | Banking
Client: Community Bancorp, Inc.
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor
- Community Bancorp, Inc. (“Community”) is the holding company for Community State Bank, headquartered in St. Charles, Michigan. Community operates seven branches and a loan production office throughout Saginaw, Genesee and Shiawassee Counties.
- At December 31, 2015, Community had assets of $195.7 million, a gross loans to deposits ratio of 46.9%, shareholders’ equity of $21.4 million and a nonperforming assets (excluding TDRs) to assets ratio of 1.09%.
- Fentura Financial, Inc. (OTCQX: FETM) is the $445.0 million holding company for The State Bank, headquartered in Fenton, Michigan, with eight branches located in Genesee, Livingston and Oakland Counties and a loan production office in Washtenaw County.
- The total merger consideration is $21.63 million, to be paid 100% in cash, which represents approximately 115.2% of tangible book value, 17.9 times trailing twelve months reported earnings and 46.8 times core earnings.
- The transaction is expected to close in the third quarter of 2016, subject to customary closing conditions, including regulatory approvals and the approval of Community shareholders.
- Boenning is serving as financial advisor and issued a fairness opinion to Community.