Banking, finance, and taxes
A Bank Merger With M&T and Provident (MTB, PBKS)
Published:
Last Updated:
M&T Bank Corporation (NYSE: MTB) has agreed to acquire Provident Bankshares Corporation (NASDAQ: PBKS) for roughly $401 million in stock.
On the surface, this is a huge premium. Provident shareholders willreceive 0.171625 shares of M&T common stock in exchange for eachshare of Provident common stock. Based on M&T’s closing stockprice of $61.18 on December 16, 2008, the deal is valued at $10.50 perProvident share. The purchase price represents a 3.7% premium to coredeposits and 1.4x tangible book value.
M&T has $65.2 billion in assets, and has operations in theBaltimore-Washington metropolitan area. Provident is based in Baltimoreand has roughly $6.4 billion in assets. M&T also expects to gainapproximately $4.6 billion in deposits and $4.3 billion in loans fromthe merger.
In addition, M&T willget to add 143 Provident branch offices and 198 ATMs located primarilyin Maryland and Virginia. This will then add on to M&T’s existing177 branches and 545 ATMs in the same region. When combined withM&T’s existing Mid-Atlantic franchise, the merger will give M&Tthe second-largest deposit share in Maryland and will triple itspresence in Virginia.
Join our open email distribution list to hear about other mergers, Warren Buffett activities, IPO’s, secondary offerings, private placements, special situations, rumors, and more.
Jon C. Ogg
December 19, 2008
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
