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CITBA terminates tie-up deal with Merchants Bancorp.

M2 EQUITYBITES-March 20, 2014-CITBA terminates tie-up deal with Merchants Bancorp

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20 March 2014 - US CITBA Financial Corp (OTCBB:CBAF) said it had terminated its proposed amalgamation with local sector player Merchants Bancorp as a result of regulatory delays.

The delays to secure regulatory clearances for the transaction have caused the expected timeframe for completion of the deal to extend beyond the deadline set in the merger accord, CITBA's CEO Lynn Gordon explained.

Gordon stressed that the delays did not reflect regulatory concerns over the earnings, asset quality or financial condition of either of the firms or the deal itself.

Merchants, which is owned by chairman and CEO Michael Petrie and Randall Rogers and their families, and CITBA agreed the all-stock merger in May 2013, saying they expected to finalise the transaction in the third quarter of last year.

Pursuant to the terms of the cancelled combination, Merchants' eight stockholders would have received 370.7908 CITBA shares for each of their 10,000 shares, resulting in ownership of 80% of CITBA's outstanding stock.

CITBA would have continued as the surviving entity and would have adopted the name Merchants Bancorp. CITBA's unit Citizens Bank would have been amalgamated into Merchants' subsidiary Merchants Bank of Indiana.

CITBA engages in retail banking, while Merchants zeroes in on mortgage and agricultural lending and wealth services.

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Publication:M2 EquityBites (EQB)
Date:Mar 20, 2014
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