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Bank holding companies

Peoples Heritage Financial Group to Acquire Bankcore in $19.5 Million Deal

Strategic Insights

— 2 min read

Peoples Heritage Financial Group, a Maine-based banking holding company, has announced its intent to acquire Bankcore, the holding company for North Conway Bank, in a deal valued at $19.5 million, or 1.2 times Bankcore's book value at December 31, 1994. The acquisition will expand Peoples Heritage's New Hampshire franchise and provide access to a broader market.

As part of the agreement, each of Bankcore's outstanding shares will be converted into 75.16 shares of Peoples Heritage common stock and a five-year debenture, with an option for shareholders to receive cash instead. The deal is expected to close in mid-1995 and be accretive to earnings per share upon acquisition. Peoples Heritage intends to use its common stock to deliver to Bankcore shareholders.

The acquisition marks a significant expansion for Peoples Heritage, which currently operates 57 banking centers throughout Maine and four in New Hampshire through its subsidiary, First Coastal Banks. Bankcore, a privately held bank holding company, had $1.3 million in net income during 1994 and $133 million in consolidated assets at the end of that year.

Key Takeaways:

  • Peoples Heritage to acquire Bankcore in a deal valued at $19.5 million, or 1.2 times Bankcore's book value at December 31, 1994.
  • Each Bankcore outstanding share will convert into 75.16 shares of Peoples Heritage common stock and a five-year debenture, with an option for cash.
  • Deal expected to close in mid-1995 and be accretive to earnings per share upon acquisition.
  • Peoples Heritage intends to use its common stock to deliver to Bankcore shareholders.
  • Acquisition expands Peoples Heritage's New Hampshire franchise and provides access to a broader market.
  • Peoples Heritage to integrate Bankcore's North Conway Bank into its existing network.
  • Bankcore to benefit from Peoples Heritage's commitment to community involvement and quality customer service.

Statistics:

  • $19.5 million: Value of the acquisition deal.
  • 1.2: Multiple of Bankcore's book value at December 31, 1994.
  • 75.16: Number of Peoples Heritage common shares each Bankcore share will convert to.
  • $958.30: Principal amount of the five-year debenture per share.
  • 1,954.17: Per share consideration amount based on Peoples Heritage's closing stock price on February 17, 1995.
  • 57: Number of banking centers operated by Peoples Heritage in Maine.
  • 10: Number of banking offices operated by The First National Bank of Portsmouth, a subsidiary of Peoples Heritage.
  • $2.8 billion: Total assets of Peoples Heritage at December 31, 1994.
  • $229.3 million: Shareholders' equity of Peoples Heritage at December 31, 1994.
  • $1.3 million: Net income of Bankcore during 1994.
  • $133 million: Consolidated assets of Bankcore at December 31, 1994.
  • $15.7 million: Total shareholders' equity of Bankcore at December 31, 1994.

Sources:

  • "Peoples Heritage to Acquire Bankcore" - Business Wire, February 22, 1995.
  • Peoples Heritage Financial Group, Inc., Form 8-K filing with the Securities and Exchange Commission, February 22, 1995.
  • Bankcore Inc., press release, February 22, 1995.

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