Suncrest Bank file photo
Written by The Business Journal Staff
It’s been a year of mergers and acquisitions for Central Valley-based banks, and a South Valley institution is the latest to get in on the act.
Visalia-based Suncrest Bank on Tuesday announced a merger agreement with Sacramento’s Community Business Bank in a deal valued at about $62.5 million in cash and stock. Pending shareholder and regulatory approvals, the deal is scheduled to close in the second quarter of 2018.
With two branches in West Sacramento and Lodi, Community Business Bank will continue to operate under the same name, as a division of Suncrest Bank. Suncrest President and CEO Ciaran McMullan will continue in those positions of the combined bank, while Community Business Bank CEO John A. DiMichele and President Chad Meyer will join the board of the combined bank as non-executive directors.
The merger will create an approximately $900 million community bank at its closing. Founded in 2008, Suncrest officials in 2014 set a goal to reach half a billion dollar in assets within five years, hitting that mark late last year when it completed the acquisition of Fresno’s Security First Bank.
“This is a truly transformational deal for Suncrest, with the potential to double our assets and double our market capitalization while significantly improving our earnings power,” McMullan said in a statement. “The completion of this transaction will make Suncrest a formidable competitor in the Central Valley banking marketplace, and positions us for continued profitable growth in key markets such as the Greater Sacramento area and the South Valley.”
Community Business Bank, operating under parent company CBBC Bancorp, has $325 million in assets and annualized year-to-date loan growth of 20 percent, compared to Suncrest’s 17-percent growth.
Suncrest currently has branches in Fresno, Visalia, Kingsburg, Porterville and Yuba City, which was the product of a $9.4 million acquisition of Sutter Community Bank in 2015.
It’s been a busy year for local banking acquisitions. Bank of the Sierra just completed the purchase of a Citizens Business Bank branch in Woodlake, and also completed the acquisition of OCB Bancorp in Ventura County last month.
Also last month, Central Valley Community Bank completed the acquisition of Folsom Lake Bank near Sacramento.