Mergers & Acquisitions

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Deal Overview

Buyer:
Mercantile Bank Corporation
Actual Acquirer:
Mercantile Bank Corporation
Target:
Firstbank Corporation
Deal Type:
Bank & Thrift Company
Agreement Date:
8/14/2013
Announcement Date:
8/15/2013
Announced Deal Value ($ M):
154.54
Status:
Completed
Completion Date:
6/1/2014
Announced Deal Value Per Share ($ )
19.02

Consideration Breakout
Common Stock ($M) 173.0
Common Stock Issued 8,087,272

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 115.9 123.7
Price / Tangible Book (%) 159.6 166.6
Price / Earnings (x) 13.9 15.2
Price / Deposits (%) 12.79 13.99
Price / Assets (%) 13.08 14.06
Tangible Book Premium/ Deposits (%) NA NA
Deal Terms
Description of Consideration

Mercantile Bank Corp. exchanged 1.00 share of its common stock for each outstanding share of Firstbank Corp. In addition, Mercantile Bank Corp. assumed $36.1 million in junior subordinated debentures.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? Yes
Geographic Expansion? Partial Overlap
Goodwill Generated ($ 000) 49,473
Estimated Cost Savings (%) 12.80
Estimated Cost Savings ($ 000) 5,500
Est. Restructuring Charges ($ 000) 12,100
Maximum Termination Fee ($ 000) 7,900
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 1.000000
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 17,478
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Keefe Bruyette & Woods Inc.
Seller Yes Sandler O'Neill & Partners LP
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Warner Norcross & Judd LLP
Seller Yes Varnum LLP