83.9 F
San Fernando
Friday, Mar 29, 2024

All-Stock Merger for Bank of Santa Clarita

Southern California Bancorp announced late April it will acquire Bank of Santa Clarita for $56.2 million, the San Diego business said.Bank of Santa Clarita shareholders will receive a share of Southern California Bancorp common stock in exchange for each of their shares. The all-stock transaction is valued at $56.2 million based on Southern California Bancorp’s stock price of $14.15; the value of the merger consideration will fluctuate based on stock price, according to the SCB.Once the acquisition is finalized, Southern California Bancorp shareholders will own 78 percent of the company’s shares while bank of Santa Clarita shareholders are expected to own 22 percent.Bank of Santa Clarita Chief Executive Frank Di Tomaso will join the board of directors for holding company Southern California Bancorp and its operating subsidiary, Bank of Southern California.“On behalf of our board of directors, I am pleased to announce our merger into Bank of Southern California,” Di Tomaso said in a statement. “We share with them a banking culture focused on providing high-touch, personalized service to small and middle-market businesses. … We believe this strategic partnership, with a shared vision of providing relationship-based banking to the middle-market, will benefit our shareholders, customers, employees and communities. We will continue to focus on maintaining and creating strong relationships and bringing value to the customers we serve.”Di Tomaso will provide expertise in client relations and marketing to the combined bank, in addition to his role on each board.Added David Rainer, executive chairman of SCB: “The acquisition of Bank of Santa Clarita marks an important step in our strategy to grow our commercial banking model by expanding the bank’s footprint north of Los Angeles to the attractive banking communities of the Santa Clarita area.”“The cultures, values and relationship-based banking models of these two banks are in close alignment and we are very pleased to have the Bank of Santa Clarita team and their customers join the Bank of Southern California family,” Nathan Rogge, chief executive of Bank of Southern California, said in a statement.Continued Rogge: “We expect an earn back on the acquisition of less than one year, with earnings modestly accretive this year and in the high single digits in 2022, the first full year of our combined operations.”The combined company will have $2 billion in assets and deposits of $1.5 billion, according to a financial report Dec. 31.

Featured Articles

Related Articles