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Annex A Agreement and Plan of Merger | | | | | | | |
Annex B Opinion of Keefe, Bruyette & Woods, Inc. | | | | | | | |
| ACNB Corporation | | | CB Financial Services, Inc. | |
| MVB Financial Corp. | | | Norwood Financial Corp. | |
| Codorus Valley Bancorp, Inc. | | | Riverview Financial Corporation | |
| Evans Bancorp, Inc. | | | Middlefield Banc Corp. | |
| Chemung Financial Corporation | | | AmeriServ Financial, Inc. | |
| ESSA Bancorp, Inc. | | | Malvern Bancorp, Inc. | |
| Premier Financial Bancorp, Inc. | | | SB Financial Group, Inc. | |
| Penns Woods Bancorp, Inc. | | | Prudential Bancorp, Inc. | |
| Fidelity D & D Bancorp, Inc. | | | Pathfinder Bancorp, Inc. | |
| Farmers & Merchants Bancorp, Inc. | | | CF Bankshares Inc. | |
| Citizens & Northern Corporation | | | Ohio Valley Banc Corp. | |
| LCNB Corp. | | | United Bancshares, Inc. | |
| Meridian Corporation | | | Emclaire Financial Corp | |
| Franklin Financial Services Corporation | | | Cortland Bancorp | |
| FNCB Bancorp, Inc. | | | | |
| | | | | | | Selected Companies | | | | | | | | Selected Companies | | ||||||||||||||||||||||||||||||||||||||||||||||
| | STND | | 25th Percentile | | Median | | Average | | 75th Percentile | | | STND | | 25th Percentile | | Median | | Average | | 75th Percentile | | ||||||||||||||||||||||||||||||||||||||||
MRQ Core Return on Average Assets (%)(1) | | | | 0.51 | | | | | 0.59 | | | | | 0.91 | | | | | 0.98 | | | | | 1.21 | | | | | | 0.51 | | | | | 0.59 | | | | | 0.91 | | | | | 0.98 | | | | | 1.21 | | | ||||||||||
MRQ Core Return on Average Tangible Common Equity (%)(1) | | | | 4.58 | | | | | 7.31 | | | | | 10.18 | | | | | 11.19 | | | | | 11.99 | | | | | | 4.58 | | | | | 7.31 | | | | | 10.18 | | | | | 11.19 | | | | | 11.99 | | | ||||||||||
MRQ Net Interest Margin (%) | | | | 2.82 | | | | | 3.05 | | | | | 3.26 | | | | | 3.21 | | | | | 3.49 | | | | | | 2.82 | | | | | 3.05 | | | | | 3.26 | | | | | 3.21 | | | | | 3.49 | | | ||||||||||
MRQ Fee Income / Operating Revenue (%)(2) | | | | 17.6 | | | | | 14.1 | | | | | 19.0 | | | | | 24.9 | | | | | 24.7 | | | | | | 17.6 | | | | | 14.1 | | | | | 19.0 | | | | | 24.9 | | | | | 24.7 | | | ||||||||||
MRQ Efficiency Ratio (%) | | | | 61.9 | | | | | 68.3 | | | | | 63.9 | | | | | 63.9 | | | | | 59.5 | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | STND | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
MRQ Efficiency Ratio (%) | | | | | 61.9 | | | | | | 68.3 | | | | | | 63.9 | | | | | | 63.9 | | | | | | 59.5 | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | STND | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
Tangible Common Equity / Tangible Assets (%) | | | | | 11.15 | | | | | | 7.78 | | | | | | 8.98 | | | | | | 9.06 | | | | | | 10.25 | | |
Total Risk Based Capital Ratio (%) | | | | | 17.93 | | | | | | 12.64 | | | | | | 14.01 | | | | | | 14.35 | | | | | | 15.67 | | |
Loans / Deposits (%) | | | | | 94.7 | | | | | | 81.4 | | | | | | 89.9 | | | | | | 90.2 | | | | | | 93.0 | | |
Loan Loss Reserve / Deposits (%) | | | | | 0.93 | | | | | | 0.96 | | | | | | 1.04 | | | | | | 1.05 | | | | | | 1.13 | | |
Nonperforming Assets / Loans + OREO (%) | | | | | 0.71 | | | | | | 1.49 | | | | | | 1.19 | | | | | | 1.17 | | | | | | 0.56 | | |
MRQ Net Charge-Offs / Average Loans (%) | | | | | 0.02 | | | | | | 0.08 | | | | | | 0.04 | | | | | | 0.10 | | | | | | 0.01 | | |
| | | | | | | | | Selected Companies | | |||||||||||||||||||||
| | | STND | | | 25th Percentile | | | Median | | | Average | | | 75th Percentile | | |||||||||||||||
One-Year Stock Price Change (%) | | | | | (33.0) | | | | | | (41.2) | | | | | | (33.6) | | | | | | (31.3) | | | | | | (23.0) | | |
Year-to-Date Stock Price Change (%) | | | | | (37.4) | | | | | | (45.4) | | | | | | (38.1) | | | | | | (36.2) | | | | | | (30.5) | | |
One-Year Total Return (%) | | | | | (30.6) | | | | | | (38.9) | | | | | | (30.3) | | | | | | (29.2) | | | | | | (21.0) | | |
Stock Price / Tangible Book Value per Share (x) | | | | | 0.76 | | | | | | 0.72 | | | | | | 0.82 | | | | | | 0.85 | | | | | | 0.93 | | |
Stock Price / LTM EPS (x) | | | | | 12.8 | | | | | | 8.0 | | | | | | 9.1 | | | | | | 9.6 | | | | | | 11.4 | | |
Price / 2020 EPS (x) | | | | | — | | | | | | 8.7 | | | | | | 10.1 | | | | | | 11.0 | | | | | | 12.4 | | |
Price / 2021 EPS (x) | | | | | — | | | | | | 9.1 | | | | | | 11.4 | | | | | | 11.2 | | | | | | 13.2 | | |
Price / 2022 EPS (x) | | | | | — | | | | | | 9.6 | | | | | | 12.1 | | | | | | 11.7 | | | | | | 13.9 | | |
Dividend Yield (%) | | | | | 4.7 | | | | | | 2.9 | | | | | | 3.8 | | | | | | 3.7 | | | | | | 5.1 | | |
LTM Dividend Payout Ratio (%) | | | | | 60.1 | | | | | | 21.4 | | | | | | 37.5 | | | | | | 35.3 | | | | | | 46.7 | | |
| Acquiror | | | Acquired Company | |
| Bridge Bancorp, Inc. | | | Dime Community Bancshares, Inc. |
| |||||
| Provident Financial Services, Inc. | | | SB One Bancorp | |
| United Community Banks, Inc. | | | Three Shores Bancorporation, Inc. | |
| Enterprise Financial Services Corp | | | Seacoast Commerce Banc Holdings | |
| Blue Ridge Bankshares, Inc. | | | Bay Banks of Virginia, Inc. | |
| | | Dollar / STND | | | Selected Transactions | | ||||||||||||
| | | Median | | | Average | | ||||||||||||
Transaction Value / Tangible Book Value (x) | | | | | 1.34 | | | | | | 1.21 | | | | | | 1.17 | | |
Transaction Value / LTM EPS (x) | | | | | 22.4 | | | | | | 11.5 | | | | | | 12.1 | | |
Core Deposit Premium (%) | | | | | 6.3 | | | | | | 3.3 | | | | | | 1.9 | | |
One-Day Market Premium (%) | | | | | 76.0 | | | | | | 21.4 | | | | | | 13.3 | | |
| | | At December 31, 2020 (in thousands) | | |||
Cash and equivalents | | | | $ | 44,176 | | |
Securities | | | | | 169,178 | | |
Total loans | | | | | 723,426 | | |
Allowance for loan losses | | | | | (7,756) | | |
Loans receivable, net | | | | | 715,670 | | |
Other assets | | | | | 75,087 | | |
Total Assets | | | | $ | 1,004,109 | | |
Noninterest-bearing deposits | | | | $ | 149,791 | | |
Interest bearing deposits | | | | | 612,641 | | |
Total deposits | | | ��� | | 762,432 | | |
Borrowed funds | | | | | 92,275 | | |
Other liabilities | | | | | 4,266 | | |
Stockholders’ equity | | | | | 145,136 | | |
Total Liabilities & Equity | | | | $ | 1,004,109 | | |
| | | For the Year Ended December 31, 2020 (in thousands) | | |||
Total interest income | | | | $ | 36,493 | | |
Total interest expense | | | | | 7,343 | | |
Provision for loan losses | | | | | 2,958 | | |
Net interest income after provision for loan losses | | | | | 26,192 | | |
Noninterest income | | | | | 4,349 | | |
Noninterest expense | | | | | 21,507 | | |
|
| | | For the Year Ended December 31, 2020 (in thousands) | | |||
Net income before taxes | | | | | 9,034 | | |
Provision for income | | | | | 1,588 | | |
Net income | | | | $ | 7,446 | | |
|
| | | For the Year Ended December 31, 2020 (in thousands) | | |||
Total interest income | | | | $ | 36,493 | | |
Total interest expense | | | | | 7,343 | | |
Provision for loan losses | | | | | 2,958 | | |
Net interest income after provision for loan losses | | | | | 26,192 | | |
Noninterest income | | | | | 4,349 | | |
Noninterest expense | | | | | 21,507 | | |
Net income before taxes | | | | | 9,034 | | |
Provision for income | | | | | 1,588 | | |
Net income | | | | $ | 7,446 | | |
Named Executive Officers | | Cash ($)(1) | | Equity ($)(2) | | Pension/ NQDC($)(3) | | Perquisites/ Benefits ($) | | Total ($) | | | Cash ($)(1) | | Equity ($)(2) | | Pension/ NQDC($)(3) | | Perquisites/ Benefits ($) | | Total ($) | | ||||||||||||||||||||||||||||||||||||||||
Andrew W. Hasley | | | | 1,906,539 | | | | | — | | | | | 49,067 | | | | | — | | | | | 1,955,606 | | | | | | 1,906,539 | | | | | — | | | | | 49,067 | | | | | — | | | | | 1,955,606 | | | ||||||||||
Timothy K. Zimmerman | | | | 1,884,469 | | | �� | | — | | | | | — | | | | | — | | | | | 1,884,469 | | | | | | 1,884,469 | | | | | — | | | | | — | | | | | — | | | | | 1,884,469 | | | ||||||||||
Susan A. Parente | | | | 1,119,800 | | | | | 39,072 | | | | | — | | | | | — | | | | | 1,158,872 | | | | | | 1,119,800 | | | | | 39,072 | | | | | — | | | | | — | | | | | 1,158,872 | | |
| | | Restricted Stock ($) | | |||
Andrew W. Hasley | | | | | — | | |
Timothy K. Zimmerman | | | | | — | | |
Susan A. Parente | | | | | 39,072 | | |
| | | Individual SERP ($) | | |||
Andrew W. Hasley | | | | | 49,067 | | |
Name and Address | | | Number of Shares Owned | | | Percent of Common Stock Outstanding(1) | | ||||||
Standard Bank, PaSB Employee Stock Ownership Plan 2640 Monroeville Blvd. Monroeville, Pennsylvania 15146 | | | | | 253,588(2) | | | | | | 5.22% | | |
| | | Number of Shares Owned | | | Number of Shares That May Be Acquired Within 60 Days By Exercising Options | | | Percent of Common Stock Outstanding(1) | | |||||||||
Directors: | | | | | | | | | | | | | | | | | | | |
William T. Ferri | | | | | 45,160(2) | | | | | | — | | | | | | * | | |
Terence L. Graft | | | | | 50,371(3) | | | | | | — | | | | | | 1.06% | | |
Andrew W. Hasley | | | | | 49,162(4) | | | | | | — | | | | | | 1.03% | | |
Paul A. Iurlano | | | | | 28,162(5) | | | | | | — | | | | | | * | | |
John M. Lally | | | | | 32,793 | | | | | | — | | | | | | * | | |
Jennifer H. Lunden | | | | | 5,996 | | | | | | — | | | | | | * | | |
David C. Mathews | | | | | 60,477(6) | | | | | | — | | | | | | 1.27% | | |
Ronald J. Mock | | | | | 17,126 | | | | | | — | | | | | | * | | |
Thomas J. Rennie | | | | | 21,426(7) | | | | | | 7,995 | | | | | | * | | |
Gregory J. Saxon | | | | | 17,824 | | | | | | — | | | | | | * | | |
R. Craig Thomasmeyer | | | | | 28,164(8) | | | | | | — | | | | | | * | | |
Dale A. Walker | | | | | 26,205(9) | | | | | | — | | | | | | * | | |
Timothy K. Zimmerman | | | | | 82,340(10) | | | | | | — | | | | | | 1.72% | | |
Executive Officers Who Are Not Directors: | | | | | | | | | | | | | | | | | | | |
Susan A. Parente | | | | | 17,982(11) | | | | | | — | | | | | | * | | |
John P. Kline | | | | | 1,147(12) | | | | | | — | | | | | | * | | |
Susan M. DeLuca | | | | | 9,584(13) | | | | | | — | | | | | | * | | |
Christian M. Chelli | | | | | 7,190(14) | | | | | | — | | | | | | * | | |
Sheila D. Crystaloski | | | | | 23,898(15) | | | | | | — | | | | | | * | | |
All Directors and Executive Officers as a Group (18 persons) | | | | | 525,007 | | | | | | 7,995 | | | | | | 11.16% | | |
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| Exhibit A Form of Voting Agreement | | | | |
| By: Name: Title: | | | | |