Investment Banking - Merchants Bancorp, Inc.

Transactions | Banking

Client: Merchants Bancorp, Inc.
Industry: Banking
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor

Merchants Bancorp, Inc. Agrees to Acquire Citizens Independent Bancorp, Inc.

  • Merchants Bancorp, Inc. (“Merchants”) is a financial holding company headquartered in Hillsboro, Ohio serving markets in central and southwest Ohio through its bank subsidiary, Merchants National Bank.  Founded in 1879, Merchants National Bank operates branches in Hillsboro, Greenfield, Washington Court House, London, Mt. Orab, Springfield, Higginsport, Batavia, Georgetown and Marysville. Merchants had approximately $708.3 million in assets, $611.7 million in loans, $622.3 million in deposits and $71.4 million in common equity as of September 30, 2018.
  • Citizens Independent Bancorp, Inc. (OTCQX: CZID) (“Citizens”) is a financial holding company headquartered in Logan, Ohio and is the parent of Citizens Bank of Logan, which operates two full-service bank branches in Logan and one in Athens.  Founded by local business leaders, Citizens has served Logan since 1961.  Citizens had approximately $201.1 million in assets, $178.8 million in loans, $178.7 million in deposits and $20.2 million in common equity as of September 30, 2018.
  • Citizens shareholders will receive $47.00 per share in cash for each outstanding share of Citizens common stock.  This represents 159.9% of Citizens’ September 30, 2018, tangible book value per share.  Stock appreciation rights (“SARs”) of Citizens will be cashed out at the spread between the strike price of each SAR and the offer price.  Citizens has 687,769 shares of common stock as well as 46,600 SARs with a weighted average strike price of $25.48.  Aggregate consideration is approximately $33.3 million.
  • The transaction closed April, 2019.
  • Boenning served as financial advisor and issued a fairness opinion to Merchants.