FirstMerit Corp fka FMER

[mlkrborn]

Citizens Rep Bancorp to be acquired by FirstMerit Corp (FMER) at $22.50/share or ~$912 mln; transaction expected to be significantly accretive to combined co's estimated 2014 GAAP/Operating EPS (CRBC) 19.87 : FirstMerit Corp (FMER) and Citizens Republic Bancorp (CRBC) announce that they have entered into a definitive agreement under which FirstMerit will acquire Citizens in a stock-for-stock transaction with a total value of ~$912 mln based on FirstMerit's average ten-day closing stock price ended September 12, 2012. Citizens' shareholders will receive a fixed 1.37 shares of FirstMerit common stock in exchange for each share of Citizens' common stock. Based on FirstMerit's average ten-day closing stock price ended September 12, 2012, the implied value of a Citizens' share would be $22.50. Upon completion of the transaction, the combined company will have approximately: $24 billion in total assets; $15 billion in loans; and $19 billion in deposits. Following the merger, FirstMerit expects to retain its strong capital position with pro forma Tier 1 Ratio of ~10.36%, Total Risk-Based Capital of 12.67% and Tangible Common Equity to Tangible Assets of 7.15%, after restructuring charges and an anticipated capital raise of ~$100 mln of Tier 1 Preferred and $250 mln of Tier 2 debt.