Another takeover, another 3x return on invested capital

Columbia Banking System, Inc. (NASDAQ: COLB, “Columbia”), the holding company for Columbia State Bank, and Bank of Commerce Holdings (NASDAQ: BOCH, “Bank of Commerce”), the holding company for Merchants Bank of Commerce, today announced the signing of a definitive agreement to merge Bank of Commerce into Columbia in an all-stock transaction valued at approximately $266.0 million, or $15.72 per share of Bank of Commerce common stock based on Columbia’s stock price on June 23, 2021. This transaction represents Columbia’s entrance into the California market, and the combined company will have over 150 branches with $19 billion in assets throughout Washington, Oregon, Idaho and California.

“We are delighted to welcome Merchants Bank of Commerce clients and employees into the Columbia Bank family, extending our footprint beyond the Northwest and into California,” said Clint Stein, Columbia’s President and Chief Executive Officer. “We have tremendous respect for the Merchants Bank of Commerce franchise and view this as an opportunity to expand with an organization that aligns with our long-standing commitment to clients and community. Northern California shares many similarities with the Northwest in both metropolitan and rural markets, making expansion into this region a natural extension of our existing footprint. We appreciate how the management team has grown this franchise in a profitable manner and are excited to have them join Columbia to help manage our California expansion.”

This transaction is expected to be accretive to Columbia’s earnings with 3% accretion to earnings per share in 2022 and 4% accretion in 2023, and 0.3% accretion to tangible book value per share. All locations will continue operations under the Merchants Bank of Commerce brand as a division of Columbia Bank following the close of the merger. Bank of Commerce Chief Executive Officer Randy Eslick will continue leadership of the division in the role of ...

Read More
Comments

A focus bank takeover for a more than 3X return

GRAND RAPIDS, Mich. and TAMPA, Fla., June 16, 2021 /PRNewswire/ -- The Boards of Directors of Lake Michigan Credit Union ("LMCU") and Pilot Bancshares, Inc, (OTCQX: PLBN), the holding company for Tampa-based Pilot Bank and National Aircraft ...

Read More
Comments

Focus Bank Takeover- a more than 3x return for us

GRAND RAPIDS, Mich. and TAMPA, Fla., June 16, 2021 /PRNewswire/ -- The Boards of Directors of Lake Michigan Credit Union ("LMCU") and Pilot Bancshares, Inc, (OTCQX: PLBN), the holding company for Tampa-based Pilot Bank and National Aircraft ...

Read More
Comments

Another Takeover at 2.5x our cost!

First Bancorp (Nasdaq: FBNC), the parent company of First Bank, and Select Bancorp, Inc. ("Select") (Nasdaq: SLCT), the parent company of Select Bank and Trust Company ("Select Bank"), announced today the signing of a definitive merger agreement under which First ...

Read More
Comments

Friday Edition: Dividends, Buybacks and massive profits

This week I am returning to the idea of shareholder yield. Last time we talked about combing high shareholder yields combined with insider buying. One of three picks, Mannatech (MTEX), announced a tender offer this morning, and the stock has ...

Read More
Comments

Friday Addition Edition: Banks, PE loans and Aloe Vera

Most of you have been with me for some time now and are aware that I spend a lot of time testing ideas and strategies. I get lots of ideas, and as Victor Niederhoffer once said," If it can be ...

Read More
Comments

Friday Edition- Big Sellers and Under the Radar Ideas

I read the headlines this morning, and it's really hard not to laugh out loud at the mainstream media and analyst community and see what they find surprising.

Everyone is surprised that retail sales do not match last month's. Sales ...

Read More
Comments

Friday Addition Edition- Surprised Experts, Big Sellers and ,Under the Radar Ideas

I read the headlines this morning, and it's really hard not to laugh out loud at the mainstream media and analyst community and see what they find surprising.

Everyone is surprised that retail sales do not match last month's. Sales ...

Read More
Comments

Friday Addition- A Random Walk

This morning I am just taking a walk through the markets kicking tires and turning over rocks in the constant search for opportunities. Rather than bore you with more data from the Fed (as important as that is in the ...

Read More
Comments

Friday Addition Edition- A Random Walk

This morning I am just taking a walk through the markets kicking tires and turning over rocks in the constant search for opportunities. Rather than bore you with more data from the Fed (as important as that is in the ...

Read More
Comments

Takeover #2 for the year- a 269% Return!

GREEN BAY, Wis. and MANISTIQUE, Mich., April 12, 2021 /PRNewswire/ -- Nicolet Bankshares, Inc. (NASDAQ: NCBS) ("Nicolet") and Mackinac Financial Corporation (NASDAQ: MFNC) ("Mackinac") today jointly announced the execution of a definitive merger agreement, ...

Read More
Comments

Friday Edition- More Insiders

I was thinking about what I should write about this morning over my coffee. My core instinct was to send a two-word edition of eh Friday note that just said: "Do nothing."

Markets have rallied straight up since last March. ...

Read More
Comments

Reviews Average Rating          

         
         
See All Reviews →