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- Strategic merger creates $1b asset Arizona headquartered community bank, filling a need in a large and growing market area
- Significant shareholder value creation expected through meaningful earnings accretion and enhanced profitability metrics
- Attractive geographic footprint surrounding the Phoenix MSA and boasting a multi-state footprint across Arizona and New Mexico
SCOTTSDALE, Ariz. , April 27, 2023 /PRNewswire/ — Bancorp 34, Inc. BCTF (“BCTF”), the holding company of Bank 34, and CBOA Financial, Inc. CBOF (“Commerce”), the holding company of Commerce Bank of Arizona, today jointly announced the signing of a definitive merger agreement to combine and form the second largest bank headquartered in Arizona.
Under the terms of the definitive merger agreement, Commerce shareholders will receive 0.24 shares of BCTF common stock for each share of Commerce common stock they own. Based on BCTF’s stock price of $11.25 as of market close on April 26, 2023, the price per share for Commerce shareholders would be $2.70, or approximately $28 million in aggregate deal value. The value of the per share consideration received by Commerce shareholders will rise and fall based on the value of BCTF shares. BCTF shareholders will own approximately 65%, and Commerce shareholders will own approximately 35%, of the pro forma company.
Jim Crotty, CEO of BCTF, said, “This is an exciting combination that will accelerate both companies’ strategic goals by enhancing our ability to serve our customers. Higher lending limits will allow us to tap new opportunities and grow stronger relationships with our existing customers, while increased scale will allow us to more efficiently meet the needs of all our stakeholders. I am excited to partner with the Commerce team and believe we will do great things together.”
Chris Webster, CEO of Commerce, said, “This unique strategic merger is the culmination of months and months of collaboration and consideration with BCTF’s fantastic team. The opportunity…
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