Mergers & Acquisitions

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Deal Overview

Buyer:
United Bancorp, Inc.
Actual Acquirer:
United Bancorp, Inc.
Target:
Powhatan Point Community Bancshares, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
6/14/2018
Announcement Date:
6/14/2018
Announced Deal Value ($ M):
6.84
Status:
Completed
Completion Date:
10/15/2018
Announced Deal Value Per Share ($ )
129.10

Consideration Breakout
Cash ($M) 1.5
Common Stock ($M) 4.7
Common Stock Issued 366,623

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 132.9 121.4
Price / Tangible Book (%) 132.9 121.4
Price / Earnings (x) 24.5 17.7
Price / Deposits (%) 12.75 11.23
Price / Assets (%) 11.63 10.25
Tangible Book Premium/ Deposits (%) 3.35 2.09
Deal Terms
Description of Consideration

United Bancorp Inc. paid $28.52 per share in cash and exchanged 6.9233 shares of its common stock for each of the outstanding share of Powhatan Point Community Bancshares Inc. Target financials are for First National Bank of Powhatan Point.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) NA
Estimated Cost Savings (%) 21.00
Estimated Cost Savings ($ 000) 181
Est. Restructuring Charges ($ 000) 123
Maximum Termination Fee ($ 000) 300
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 6.923300
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) 1,012
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes ProBank Austin
Seller Yes CAMELS Consulting Group, LLC
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Shumaker Loop & Kendrick LLP
Seller Yes Dinsmore & Shohl LLP