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Mergers & Acquisitions

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Deal Overview

Buyer:
First Merchants Corporation
Actual Acquirer:
First Merchants Corporation
Target:
Community Bancshares, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
7/21/2014
Announcement Date:
7/22/2014
Announced Deal Value ($ M):
46.32
Status:
Completed
Completion Date:
11/7/2014
Announced Deal Value Per Share ($ )
84.21

Consideration Breakout
Cash ($M) 15.0
Common Stock ($M) 34.3
Common Stock Issued 1,600,000

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 122.8 130.7
Price / Tangible Book (%) 122.8 130.7
Price / Earnings (x) 19.5 20.7
Price / Deposits (%) 20.10 22.30
Price / Assets (%) 17.24 18.96
Tangible Book Premium/ Deposits (%) 3.92 5.52
Deal Terms
Description of Consideration

First Merchants Corp. paid $85.94 in cash or exchanged 4.0926 shares of its common stock for each outstanding share of Community Bancshares Inc., subject to 68.3% of the consideration being paid in stock. Target financials are for Community Bank.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) 13,776
Estimated Cost Savings (%) 40.00
Estimated Cost Savings ($ 000) 2,799
Est. Restructuring Charges ($ 000) 1,465
Maximum Termination Fee ($ 000) 1,500
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 4.092600
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 4,658
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer No NA
Seller Yes SunTrust Robinson Humphrey Inc
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Bingham Greenebaum Doll LLP
Seller Yes Krieg DeVault LLP

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