The $3 billion-asset MVB said in a press release Friday that it will pay $98 million in stock for the parent of the $435 million-asset West Town Bank & Trust. The deal, which is expected to close in the first quarter, priced IFH at 128% of its tangible book value.
West Town has $326 million of loans and $334 million of deposits. It is known for its government guaranteed lending team, which has originated more than $1 billion of loans since its formation in 2018.
IFG unit Windsor Advantage services about $2.1 billion of SBA and USDA loans.
The transaction is expected to be immediately accretive to MVB’s tangible book value and bout 15% accretive to its 2023 earnings per share.
“Even in wet track market conditions, MVB continues to be opportunistic and look for deals that make sense to our business model,” Larry Mazza, MVB’s CEO, said in the release.
“This acquisition accelerates both our SBA and strategic lending partnerships growth vehicles to the benefit of our clients and shareholders,” Mazza added. “Both strong companies on our own, together we become a national leader in government guaranteed lending, specifically SBA and USDA lending.”
Eric Bergevi, IFG’s president and CEO, will join MVB’s executive leadership team. Riddick Skinner, IFH’s executive vice president of government lending, and Mike Breckheimer, executive vice president of corporate strategy, will also join MVB.
MVB plans to cut about 30% of IFG’s annual nonininterest expenses. It expects to incur $10.5 million of merger-related expenses.
Stephens and Squire Patton Boggs advised MVB. Raymond James and Wyrick Robbins Yates & Ponton advised IFH.
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