Investment Banking - First National Bank of Fredericksburg

Transactions | Banking

Client: First National Bank of Fredericksburg
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor

  • First National Bank of Fredericksburg (“FNB”) was a bank headquartered in Fredericksburg, Pennsylvania.  FNB operated seven locations throughout the Lebanon Valley region.
  • As of March 31, 2015, FNB had assets of $238.1 million, loans of $142.9 million, deposits of $219.7 million, shareholders’ equity of $15.8 million, return on equity of 1.92%, net interest margin of 3.82% and a nonperforming assets to assets ratio of 2.08%.
  • Citizens Financial Services, Inc. (OTC Pink: CZFS) is a financial holding company with assets of approximately $930.0 million. The Company operates 18 branches throughout northern Pennsylvania and upstate New York through its banking subsidiary, First Citizens Community Bank, headquartered in Mansfield, PA.
  • CZFS viewed FNB as an attractive entrance into a new market and an opportunity to add geographic diversification. The combined company has approximately $1.1 billion in total assets, $1.0 billion in total deposits, and $710.0 million in total loans.
  • FNB shareholders received consideration of $630.00 in cash or 12.600 shares of CZFS common stock. CZFS purchased 75% FNB shares for stock and 25% in cash. The total merger consideration was approximately $22.1 million.
  • The purchase price was approximately 141.7% of tangible book value and 77.4 times LTM EPS.
  • Boenning served as financial advisor and issued a fairness opinion to First National Bank of Fredericksburg.