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Monday, 06/13/2016 5:19:16 AM

Monday, June 13, 2016 5:19:16 AM

Post# of 12
Farmers & Merchants Bancorp to Acquire Delta National Bancorp

June 8, 2016 8:54 PM

LODI, Calif.--(BUSINESS WIRE)--

Farmers & Merchants Bancorp (FMCB), a bank holding company headquartered in Lodi, California, and Delta National Bancorp (OTC Pink:DEBC), headquartered in Manteca, California, today announced that a definitive agreement has been signed by both parties. Under the terms of the agreement, Delta National Bancorp will merge into Farmers & Merchants Bancorp. The transaction is subject to customary closing conditions, including regulatory approvals and Delta National Bancorp’s shareholder approval. The Farmers & Merchants Bancorp and Delta National Bancorp Boards of Directors have unanimously approved the transaction, which is expected to close early in the fourth quarter of 2016.

Delta National Bancorp common shareholders will be entitled to receive, in total, 12,074 shares of Farmers & Merchants Bancorp common stock, subject to certain adjustments described in the definitive merger agreement. Based on the 20 day daily volume weighted average price of Farmers & Merchants Bancorp as of June 6, 2016, the transaction would have a value of $6.6 million, or $17.30 per Delta National Bancorp common share. However, the deal value for the common shareholders will fluctuate with changes in Farmers & Merchants Bancorp’s stock price. Delta National Bancorp’s preferred shareholders will receive $19.827 per share in cash. Farmers & Merchants Bancorp expects the acquisition to be immediately accretive to tangible book value and accretive to earnings in 2017, the first full year of combined operations.

Delta National Bancorp will be merged with and into Farmers & Merchants Bancorp and Delta National Bancorp’s banking subsidiary Delta Bank National Association with four full service branches (one branch in San Joaquin County in the city of Manteca and three branches (Riverbank, Modesto, Turlock) located in Stanislaus County), will be merged with and into Farmers & Merchants Bancorp’s banking subsidiary Farmers & Merchants Bank of Central California. The names of the combined entities will remain Farmers & Merchants Bancorp and Farmers & Merchants Bank of Central California.

The Farmers & Merchants Bancorp’s Board of Directors and the Farmers & Merchants Bank of Central California Executive Management team, led by Kent Steinwert, Chairman, President and CEO, will continue to lead the combined team of professional bankers. Warren Wegge, President, CEO and Director of Delta National Bancorp, will work with Farmers & Merchants Bancorp as an advisor through the integration process. Delta National Bancorp’s current Directors, Valerie Rossi and Toinette Rossi will continue in consulting roles for a period of one year.

As of March 31, 2016, Farmers & Merchants Bancorp on a pro forma consolidated basis with Delta National Bancorp would have had approximately $2.7 billion in total assets, with 28 locations serving California’s Central Valley and East Bay Area regions.

[....]

About Delta National Bancorp

Delta National Bancorp is the parent holding company for Delta Bank National Association, a locally owned and operated community bank established in 1973, serving the needs of consumers and businesses through four locations in Stanislaus and San Joaquin county. As of March 31, 2016, the Bank had approximately $106 million in assets and serves the communities of Manteca, Riverbank, Modesto and Turlock.

[....]

http://finance.yahoo.com/news/farmers-merchants-bancorp-acquire-delta-005400471.html

*Marker post announcement on the acquired bank;
Delta National Bancorp (PC) (DEBC)
$ 16.50 up 8.60 (108.86%)
Volume: 191

**Marker
Farmers & Merchants (FMCB)
$610.00 up 10.0 (1.67%)
Volume: 32


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