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Regal Bank merger with Community First Bank finalized

TKG was financial advisor and rendered a fairness opinion to Regal Bank

Closed April 2016

New Jersey-based Regal Bank to acquire Community First

October 20, 2015 / Livingston, NJ – Livingston, New Jersey-based Regal Bank ($373.1 million) agreed to acquire Somerset, New Jersey-based Community First Bank ($98.5 million) in a $9.7 million stock and cash deal, according to an October 20 news release.

The deal was valued at approximately $9.7 million, based on Community First’s stockholders equity as of September 30, with 90% of the consideration in stock and 10% in cash.
On an aggregate basis, SNL calculates the deal value to be 110.1% of book and tangible book. The price is 10.87% of deposits and 9.85% of assets. The deal carries a tangible book premium to core deposits of 1.54%.

Following the merger, Peter Schoberl, chairman, president and CEO of Community First, will be joining Regal Bank’s management team.

The combined entity will have approximately $500 million in total assets, total loans in excess of $400 million, approximately $415 million in deposits and total capital in excess of $45 million. With the transaction, expected to close in the first quarter of 2016, Regal Bank will enter Union and Somerset counties.