Capital Corp of the West Completes Acquisition of Town & Country Finance and Thrift.MERCED, Calif.--(BUSINESS WIRE)--July 2, 1996--Capital Corp of the West (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CCOW CCOW Clinical Context Object Workgroup CCOW Channel Control Order Wire CCOW Control Channel Order Wire CCOW Contributing to Coalition Operations Worldwide CCOW Computer Care on Wheels (Brantford, Ontario, Canada) ) announced today that it has completed the acquisition of Town & Country Finance and Thrift thrift: see leadwort. effective June 28, 1996. Total assets of the combined entity as of May 31, 1996 equaled $238 million. The transaction is valued at $5.6 million which represents approximately 158% of Town & Country book value as of May 31, 1996. The terms of the agreement provide the shareholders of Town & Country $33.05 for each share of Town & Country stock in a combination of cash and stock of Capital Corp as of June 28, 1996. The cash consideration will range from $1.6 million to $1.8 million based upon the election of the shareholders of Town & Country. The purchase will be accounted for under the purchase method of accounting and the stock portion of the deal will be a tax-free exchange tax-free exchange An exchange of assets between taxpayers in which any gain or loss is not recognized in the period during which the exchange takes place. Rather, taxpayers are required to adjust the basis of assets exchanged. for the shareholders of Town & Country. The shares issued in the transaction will be issued at a value of $14.05 per share. Town & Country will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Capital Corp and will continue to operate under its current president, Dale D. Pinkney and continue to offer its existing products and services. Town & Country is a licensed California thrift and loan company which specializes in consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. and contract financing. It currently has three offices in Turlock, Modesto and Visalia, and will be opening its fourth office in Fresno in mid July. As of May 31, 1996, Town & Country's total assets were $27 million and shareholder's equity totaled $3.5 million or $20.87 per share. Capital Corp of the West is a bank holding company which was established Nov. 1, 1995. It is the parent company to: County Bank, Merced County's only locally owned and independently managed bank, and Capital West Group, a newly formed financial and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects subsidiary. Currently, the Bank has seven branch offices to serve the communities of Merced, Stanislaus and Tuolumne counties as well as a loan production office in Modesto. Total assets of Capital were $211.8 as of May 31, 1996 and shareholder's equity totaled $15.5 million or $11.46 per share. For further information about the Company's financial performance, contact Tom Hawker, President and Chief Executive Officer, or Janey Boyce, Chief Financial Officer at 209/725-2200. CONTACT: Capital Corp of the West Tom Hawker or Janey Boyce, 209/725-2200 |
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