Valley National Receives Fed Nod To Acquire USAmeriBancorp
Zacks Investment Research | Oct 03, 2017 10:00PM ET
Valley National Bancorp (NYSE:VLY) and USAmeriBancorp, Inc. recently received necessary approval from the Federal Reserve to complete their merger. The deal was announced on Jul 26, 2017.
However, the deal is still awaiting action by The Office of the Comptroller of the Currency and shareholders of both organizations.
The merger will likely close in first-quarter 2018 and is expected to be accretive to Valley National's earnings per share within 12 months from closing of the transaction.
Per the agreement terms, shareholders of USAmeriBancorp will receive 6.1 shares of Valley National for each share held, subject to adjustment if Valley National's stock price falls below $11.50 or rises above $13.00 prior to closing. The transaction is valued at about $816 million, based on Valley's closing stock price on Jul 25, 2017.
The combined company is expected to have approximately $28 billion in assets, $21 billion in loans, $21 billion in deposits and 239 branches across New Jersey, New York, Florida and Alabama.
This merger would significantly enhance Valley National’s presence in Florida. The acquisition will also bring Valley National to the Birmingham, Montgomery, and Tallapoosa areas in Alabama, where USAmeriBankhas about 15 offices, contributing about $1.1 billion of deposits and $520 million in loans.
Valley National will retain the key executives of USAmeriBancorplike the CEO, Joseph V. Chillura, who will join as executive team member. Chairman of the acquired company, Jennifer W. Steans, will join as a board member.
Shares of Valley National have gained 3.5% year to date, versus the .
M&T Bank’s current-year earnings estimates have been revised slightly upward over the past 60 days.
Syvonus’ Zacks Consensus Estimate for current-year earnings moved about 1% upward over the past 60 days.
National Commerce’s current-year earnings estimates have been revised nearly 4% upward, over the past 60 days.
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