Under the agreement, each share of Traders common stock will be entitled to merger consideration consisting of $50 cash and 3.75 shares of Premier common stock, subject to certain conditions and limitations. The 3.75 exchange ratio is subject to certain adjustments depending upon the market price of Premier common stock just prior to consummation. Premier will issue approximately 675,000 shares of its common stock plus a total of $9 million in cash to the shareholders of Traders.
The transaction, which still requires approval by regulatory agencies and Traders’ shareholders, is anticipated to close sometime in the first half of 2008.
Robert Walker, president and CEO of Premier, commneted: We are pleased to bring another local community bank into the Premier ‘family’ expanding our community banking franchise. The Traders locations fit very well into our West Virginia market footprint. We believe Premier can provide Traders ‘behind-the-scenes’ expertise in the areas of compliance, auditing, IT and cost management. We also plan to offer new products and services to Traders’ customers.
Gary Brown, president and CEO of Traders, stated: The banking regulatory environment today makes it much more difficult for a community bank to operate and exist on its own. When Traders decided to partner with another bank we knew we wanted a partner who had the same vision as we do. Premier has a long history of providing the support and guidance necessary for their banks but at the same time allowing for autonomy and local decision-making found in a community bank.
