Customers Bancorp Inc. (CUUU.OB) and CMS Bancorp, Inc. (CMSB: Quote) jointly announced their execution of a definitive Agreement and Plan of Merger. Under the Agreement, Customers Bancorp will acquire via merger CMS Bancorp and ultimately CMS Bank.
The CMS Bancorp acquisition is expected to be mildly accretive to Customers Bancorp's capital, earnings and book value per share within the first six months after closing.
Upon closing of the transactions, Customers Bancorp will have retail banking offices located in the communities of Eastchester, Greenburgh, Mount Vernon, West Harrison, and Mount Kisco, in Westchester County, New York, as well as approximately $185 million in loans and $208 million in deposits. The total transaction value is approximately $20.8 million, and the Agreement provides for CMS Bancorp stockholders to receive shares of Customers Bancorp voting common stock based upon an exchange ratio determined at the closing of the transaction, with fractional shares to be cashed out.
CMS Bancorp stock will be valued at 95% of CMS Bancorp's common stockholders' equity as of the month end prior to the closing, while Customers Bancorp stock will be valued at 125% of Customer Bancorp's modified stockholder equity as of the month end prior to closing.
Closing of the CMS Bancorp merger is expected to occur in the first half of 2013.
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by RTT Staff Writer
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