MERGERS & ACQUISITIONS
CIT to Acquire Mutual of Omaha Bank
CIT Bank is acquiring Mutual of Omaha Bank, Mutual’s savings bank, for a purchase price of $1 billion.
The purchase price will be comprised primarily of cash and up to $150 million of CIT common stock, the amount of which will be determined by CIT. The transaction will diversify and enhance CIT’s funding profile with stable, lower-cost deposits from Mutual of Omaha Bank’s market-leading homeowner’s association (HOA) banking business. It will also advance CIT’s strategic plan, extend its commercial banking capabilities and enhance profitability.
The transaction includes $6.8 billion in deposits, $4.5 billion of which are HOA deposits from more than 31,000 community associations nationwide, and $2.3 billion of which are from commercial and consumer financial centers in key markets. In addition, $8.3 billion of total assets, including $3.9 billion of middle-market commercial loans, are part of the transaction, which adds to CIT’s growing franchise. On a pro forma basis, CIT will have approximately $42.1 billion of total deposits and $58.9 billion of total assets.
“Following our multi-year strategic transformation, we entered the next phase of our plan focused on thoughtful growth and value creation. This transaction squarely aligns to those goals by immediately enhancing our deposit and commercial banking capabilities and improving our profitability. This is a unique opportunity to accelerate our strategic plan through the addition of a market-leading HOA deposit franchise, a broader set of product and technology solutions and an expanded business footprint that complements CIT’s existing franchise,” said CIT Chairwoman and Chief Executive Officer Ellen R. Alemany.
The acquisition will accelerate the next phase of CIT’s strategic plan and complement the company’s focus on serving small and midsized businesses with thoughtful solutions, competitive financing and deposit products.
The transaction is expected to improve CIT’s deposit costs by approximately 20 basis points upon closing. The company’s return on tangible common equity ratio is expected to be enhanced by 80 basis points in 2020 and increase to more than 100 basis points over two years.
The transaction is expected to close in the first quarter of 2020, subject to regulatory approval and satisfaction of other customary closing conditions. The agreement excludes MOO’s mortgage subsidiary, Synergy One Lending.
Mechanics Bank, Rabobank Receive Regulatory Approval for Merger
Mechanics Bank and Rabobank received regulatory approval from the Board of Governors of the Federal Reserve, the Office of the Comptroller of Currency, the FDIC and the California Department of Business Oversight for Mechanics’ pending acquisition of Rabobank’s California-based and primarily retail bank.
No further regulatory approvals are required for the banks to consummate the acquisition and the other transactions contemplated by the stock purchase agreement.
Mechanics concurrently began a rights offering to its current shareholders. Pursuant to the rights offering, current shareholders received 1.10 subscription rights for each share of common stock owned as of 5:00 p.m. on July 26, 2019, the record date of the rights offering. Each subscription right entitled current shareholders to purchase one share of Mechanics common stock at the subscription price of $38,000 per share. Shareholders were not entitled to any over-subscription privilege.
The subscription rights expired if they were not exercised by 5:00 p.m. on August 23, 2019. All subscriptions received by Mechanics in the rights offering were irrevocable.
In connection with the rights offering and the stock purchase agreement, affiliates of Ford Financial Fund II and Ford Financial Fund III entered into commitments to acquire approximately 29,395 shares of Mechanics common stock.
Apollo and Athene to Acquire PK AirFinance from GE Capital
Apollo Global Management and Athene Holding will purchase PK AirFinance from GE Capital’s Aviation Services unit. In connection with this transaction, Apollo will acquire the PK AirFinance aircraft lending platform, and Athene will acquire PK AirFinance’s existing portfolio of loans.
Cerberus to Acquire Equipment Financier Axsesstoday
Cerberus Capital Management executed a deed of company arrangement related to certain subsidiaries of Axsesstoday, a provider of equipment finance solutions to small and medium businesses in Australia. Upon the closing of the transaction, Axsesstoday will operate as a privately held company, majority-owned by Cerberus.
Tokyo Century to Acquire Aviation Capital Group from Pacific Life
Aviation Capital Group and all of its outstanding interests will be acquired by Tokyo Century from ACG’s majority shareholder, Pacific Life Insurance. Tokyo Century initially acquired a 20% interest in ACG from Pacific Life in 2017 and has since contributed additional equity capital to ACG, increasing its ownership to 24.5%, to help accelerate its business expansion.
Maxim Crane Works Acquires Solley Equipment & Rigging
Maxim Crane Works and Solley Equipment & Rigging closed an agreement to allow Maxim Crane to acquire Solley Crane, a family-owned companies in the Central Tennessee and Northern Alabama regions. The combination of Solley Crane and Maxim Crane will expand Maxim Crane’s operations in one of the nation’s key geographic regions.
WSFS Financial Completes Beneficial Bank Integration into WSFS Bank
WSFS Financial completed the systems integration and rebranding of Beneficial Bank into its primary subsidiary, WSFS Bank. All Beneficial Bank accounts were converted to WSFS Bank accounts. All legacy Beneficial Bank customers will have full access to WSFS Bank services and solutions, including more than 90 retail banking offices across Delaware, Philadelphia, southeastern Pennsylvania, and southern New Jersey.
First Midwest Bancorp to Acquire Park Bank in Milwaukee
First Midwest Bancorp will acquire Bankmanagers and its wholly owned subsidiary, Park Bank, one of the largest independent commercial banks in Milwaukee. The transaction is valued at approximately $195 million, subject to certain adjustments, and is subject to customary regulatory and Bankmanagers shareholder approval. Closing is anticipated for January 2020.
BancorpSouth Completes Mergers w/Summit Financial, Van Alstyne Financial
BancorpSouth Bank completed its mergers with Panama City, FL-based Summit Financial Enterprises, the parent company of Summit Bank, and Van Alstyne, TX-based Van Alstyne Financial, the parent company of Texas Star Bank after receiving the requisite regulatory approvals.
Farmers National Banc to Acquire Maple Leaf Financial
Farmers National Banc, the holding company for The Farmers National Bank of Canfield, and Maple Leaf Financial, the holding company for Geauga Savings Bank, have entered into an agreement and plan of merger. The transaction is valued at approximately $39.6 million and is expected to close in the fourth quarter of 2019 or first quarter of 2020.