Ocean Shore Holding Co. in Ocean City, N.J., has agreed to buy CBHC Financialcorp Inc.
Ocean would pay $11.9 million in cash, or 1.3 times tangible book value, for CBHC. The $839.9 million-asset Ocean Shore said the combined bank would have more than $1 billion in assets and 12 branches after closing overlapping locations. The deal for the $135 million-asset CBHC, the holding company for Select Bank in Egg Harbor City, N.J., will expand Ocean Shore's presence in Atlantic County.
CBHC shareholders will receive $15.50 a share, or about 10.3 times the company's 2010 earnings per share, according to a press release. The transaction is expected to be 5% to 6% dilutive to Ocean Shore's tangible book value at closing, and immediately add to earnings per share. The buyer expects to remain well-capitalized following the transaction.
The deal is expected to be completed in the second quarter.
