California's Central Valley Community Bancorp Closes USD 28.47m Acquisition of Folsom Lake Bank.
M2 EQUITYBITES-October 3, 2017-California's Central Valley Community Bancorp Closes USD 28.47m Acquisition of Folsom Lake Bank
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3 October 2017 - Fresno, California, US-based Central Valley Community Bancorp and its Central Valley Community Bank (NASDAQ: CVCY) has closed the acquisition of Folsom, California, US-based Folsom Lake Bank (OTCQB: FOLB) in a stock merger, the company said.
Under the terms of the agreement, Folsom Lake Bank shareholders were entitled to receive 0.80 shares of Central Valley Community Bancorp stock per Folsom Lake Bank share.
Central Valley Community Bancorp will assume the stock option plan and outstanding stock options of Folsom Lake Bank as part of the transaction.
The Central Valley Community Bancorp board of directors and the Central Valley Community Bank executive management team will continue to lead the combined team of bankers. president, CEO and director of Folsom Lake Bank will join Central Valley Community Bank through a transition period.
This merger with Folsom Lake Bank will become the fifth acquisition for Central Valley Community Bancorp's fifth acquisition.
Conversion of all operational systems is planned for the weekend of February 9-11, 2018.
In connection with the merger, the company is issuing an aggregate of approximately 1.28m shares of its common stock and will assume the stock option plan and outstanding stock options of Folsom Lake Bank.
Based on the closing price of Central Valley Community Bancorp's common stock on September 29, 2017 of USD 22.30 per share, the aggregate consideration to be paid to Folsom Lake Bank common shareholders is approximately USD 28.47m.
As of March 31, 2017, on a pro forma consolidated basis with Folsom Lake Bank, Central Valley Community Bancorp would have had approximately USD 1.7bn in total assets. Existing Central Valley Community Bancorp shareholders will own approximately 90.5% of the outstanding shares following the merger and Folsom Lake Bank shareholders are expected to own approximately 9.5%.
Central Valley Community Bank operates 22 full-service offices throughout California's San Joaquin Valley and Greater Sacramento Region. Additionally, the bank maintains commercial real estate, agribusiness and sba lending departments.
Folsom Lake Bank reported assets of USD 202.7m as of March 31, 2017.
Central Valley Community Bancorp was advised by Keefe, Bruyette and Woods, and James Dyer, from Buchalter, a professional corporation served as legal advisor. Folsom Lake Bank was advised by Sandler O'Neill + Partners, L.P., and its legal counsel was Keith Holmes of King, Holmes, Paterno and Soriano, LLP.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 3, 2017|
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