Entering text into the input field will update the search result below

First Defiance Financial to acquire United Community Financial

Sep. 09, 2019 8:50 AM ETPremier Financial Corp. (PFC) Stock, UCFC StockBy: Gaurav Batavia, SA News Editor
  • First Defiance Financial (FDEF) to acquire United Community Financial (NASDAQ:UCFC) in a stock-for-stock transaction for total value of $473M.
  • Each shareholders of United Community will receive 0.3715 shares of First Defiance Financial, based on the closing price of First Defiance as of September 6, 2019 of $26.32.
  • Upon closing, First Defiance shareholders will own ~52.5% of the combined company and United Community shareholders will own ~47.5%.
  • The pro forma combined company will have ~$6.1B in assets, $5B in loans and $4.9B in deposits, utilizing financial information as of June 30, 2019.
  • The transaction is expected to close early in 1Q20.
  • The combined company will operate under a name to be jointly determined prior to closing and the holding company will be headquartered in Defiance, Ohio with the bank headquartered in Youngstown, Ohio.
  • First Defiance expects the transaction to deliver run-rate earnings per share accretion of ~14%, with cost savings on a fully-phased in basis.
  • Applying pro forma merger adjustments and assuming an expected early 2020 closing, dilution to tangible book value per share is estimated to be ~4%, inclusive of restructuring charges with an earnback period of ~1.8 years using the crossover method.
  • On a pro forma basis, the business is expected to deliver top-tier operating and return metrics with cost savings on a fully-phased in basis, including return on average tangible common equity in excess of 17% and return on average assets in excess of 1.5%.
  • Source: Press Release

Recommended For You

More Trending News

Related Stocks

SymbolLast Price% Chg
PFC
--
UCFC
--