Investment Banking - MBT Bancorp

Transactions | Banking

Client: MBT Bancorp
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Sell-Side Advisor

  • MBT Bancorp is the holding company for Merchants Bank and Trust Company, a $225 million bank headquartered in West Harrison, Indiana.  MBT operates six branches in the Cincinnati MSA.
  • At December 31, 2013, MBT had assets of $225.2 million, loans of $180.2 million, deposits of $187.9 million, shareholders’ equity of $23.9 million, return on equity of 7.62%, net interest margin of 3.95% and a nonperforming assets to assets ratio of 2.55%.
  • MainSource Financial Group (NASDAQ: MSFG) is a financial holding company with assets of approximately $2.9 billion. The Company operates 73 full-service offices throughout Indiana, Illinois, Kentucky and Ohio through its banking subsidiary, MainSource Bank, headquartered in Greensburg, Indiana.
  • MBT shareholders received consideration of $35.16 in cash or 2.055 shares of MSFG common stock. MSFG will pay approximately 60% of the merger consideration in  stock and 40% in cash.
  • The total merger consideration is approximately $33.8 million, based on MSFG’s closing price of $16.40 on April 4, 2014.
  • The purchase price is approximately 141% of tangible book value and 19.5x LTM core earnings.
  • Boenning served as financial advisor and issued a fairness opinion to MBT Bancorp.