Financial Advisor
InBankshares, Corp
M&A Advisory
Has Acquired
Transaction Details
- InBankshares, Corp (OTCQX: INBC) (“INBC”) and Legacy Bank (“Legacy”) announced that they entered into a definitive merger agreement, pursuant to which Legacy will merge with and into InBank, the wholly-owned subsidiary of INBC, in a stock and cash transaction
- Under the terms of the merger agreement, INBC will issue 3,566,387 shares of INBC common stock and pay $21.25 million in cash to the shareholders of Legacy Bank in the aggregate
- Prior to the closing of the transaction, Legacy will distribute to its shareholders other real estate owned (OREO) and other assets, and will pay its shareholders a special cash dividend, the amount of which will depend upon Legacy’s tangible common equity at the closing, net of certain seller-paid transaction expenses
- Merger will create a Colorado-headquartered commercial bank with approximately $1.2 billion in total assets, serving the Colorado Front Range and northern New Mexico
- INBC expects the transaction to be over 50% accretive to its earnings per share within the first year of combined operations (FY-2023E) with a pro forma return on average assets approaching 1.0%, and a tangible book value earn back of approximately 2.5 years
Sources: Company Investor Presentation and Company Press Release
-
1) Based on Legacy Bank reported tangible common equity of $63.9 million as of September 30, 2021, less the $4.9 million pre-closing distribution and the maximum pre-closing cash dividend of $16.3 million
2) 22% Tax-effect due to Sub-S corporate structure
3) Data as of or for the three months ended September 30, 2021
This material has been prepared solely for informative purposes as of its stated date and is not a solicitation, or an offer, to buy or sell any security. It does not purport to be a complete description of the securities, markets or developments referred to in the material. Information included in the material was obtained from sources which we consider reliable, but we have not independently verified such information and do not guarantee that it is accurate or complete. No subsequent publication or distribution of this material shall mean or imply that any such information or opinion remains current at any time after the stated date of the material. We do not undertake to advise you of any changes in any such information or opinion. Additional information is available upon request.
-
“Stephens” is the brand name for a family of independent privately held financial services firms, including Stephens Europe Limited, which is authorized and regulated by the Financial Conduct Authority (Registered office 12 Arthur Street, London, EC4R 9AB, Registered number 8817024) and Stephens Inc. which is regulated by the United States Securities and Exchange Commission and the Financial Industry Regulatory Authority (Home Office: 111 Center Street, Little Rock, AR USA, 501-377-2000). Stephens Inc. is a member of NYSE and SIPC. For more information, visit www.stephens.com. © 2021 Stephens