Taichung Commercial Bank Co. Ltd. agreed to acquire American Continental Bancorp in a cash transaction valued at approximately $82.1 million, or about $41.48 per share, based on calculations prepared as of June 30.
The actual cash consideration will be determined at closing, based on a multiple of 1.83 times adjusted book value of American Continental Bancorp after subtracting costs of the transaction and other items, according to a Sept. 30 news release.
The transaction is expected to close early in the first quarter of 2023, subject to Taichung Commercial Bank obtaining regulatory approvals and satisfying other customary closing conditions.
American Continental Bank, a subsidiary of American Continental Bancorp, had total assets of $324.4 million, total gross loans of $245.7 million and total deposits of $271.3 million as of June 30. Taichung Commercial Bank had total assets of $26.24 billion as of June 30, based on the exchange ratio at that time between the New Taiwan dollar and the U.S. dollar.
Upon deal completion, American Continental Bancorp operates three branches in Los Angeles County, Calif., ranked No. 83 with a 0.04% share of approximately $617.83 billion in total market deposits; one branch in San Bernardino County, Calif., ranked No. 27 with a 0.12% share of approximately $38.58 billion in total market deposits; and one branch in King County, Wash., ranked No. 44 with a 0% share of approximately $121.28 billion in total market deposits.
At the announcement, S&P Global Market Intelligence calculates the deal value to be 182.74% of common equity, 189.86% of tangible common equity, 30.36% of deposits, 25.30% of assets and 15.10x earnings. The tangible book premium to core deposits ratio is 21.33%.
Market Intelligence valuations for bank and thrift targets in the West region between Sep. 30, 2021, and Sep. 30, 2022, averaged 174.82% of book and 181.05% of tangible book and had a median of 17.49x last-12-months earnings, on an aggregate basis.
Janney Montgomery Scott LLC is financial adviser and Loren P. Hansen APC is legal counsel to American Continental Bancorp. PricewaterhouseCoopers Financial Advisory Taiwan Ltd. is financial adviser and PricewaterhouseCoopers Legal Taiwan is legal counsel to Taichung Commercial Bank.
To use S&P Capital IQ Pro's branch analytics tools to compare market overlap, click here. To create custom maps, click here.
