published on February 3, 2016 - 4:29 AM
Written by The Business Journal Staff

Security First Bank (SFRK) announced that Security First Bank and SunPac Financial have an agreement in principle to extend the time for receipt of regulatory approvals from the FDIC and the California Department of Business Oversight that would permit SunPac Financial to consummate the acquisition of Security First Bank through merger. 

Security First Bank is in negotiations to enter into a binding third amendment to the merger agreement that would extend the date for merger consummation to April 27. 

The additional time is intended to permit a favorable regulatory determination on the applications necessary to complete the proposed merger.

Under the terms of the definitive agreement for the merger, Security First Bank shareholders have the right to receive $10.50 in cash for each share of stock.

Security First Bank shareholders approved the merger agreement at the annual meeting held on May 5, 2015.

“Based on our discussions with SunPac Financial and through the due diligence we have conducted, we believe it is reasonable to agree to an extension to allow the regulatory process to be completed,” said Everett Norcross, chairman of Security First Bank. “Our Board of Directors consulted with its financial and legal advisors to assess the nature and timing of the delay and the options available to Security First Bank. Our Board of Directors continues to believe that the SunPac transaction remains financially attractive to Security First shareholders.”

Security First Bank also announced that its 2015 net income for the year ending Dec. 31, 2015 was $148,000 or 8 cents per share compared to a net income of $2,023,000 or $1.13 per share for the year ending December 31, 2014 after one time Deferred Tax Assets recognition of $2,329,000.

Total assets as of Dec. 31, 2015 were $124 million, up from $104 million as of Dec. 31, 2014.

Total loans as of Dec. 31, 2015 were $78 million, up 16 percent from $67 million as of Dec. 31, 2014.

Total deposits as of Dec. 31, 2015 were $104 million, up from $84 million as of Dec. 31, 2014

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