Central Valley Community Bancorp acquires Folsom Lake Bank.
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The Board of Directors of Central Valley Community Bancorp (NASDAQ:CVCY), a bank holding company headquartered in Fresno, California and the parent company of Central Valley Community Bank (Bank), has announced the successful completion of the previously announced acquisition of Folsom Lake Bank (OTCQB:FOLB), headquartered in Folsom, California, effective October 1, 2017, the company said.
As part of the acquisition, Folsom Lake Bank (FLB) with three full-service branches located in Folsom, Rancho Cordova, and Roseville merged with and into Central Valley Community Bank.
The acquisition, which was first announced on April 27, 2017, was concluded following receipt of Folsom Lake Bank shareholder approval and all required regulatory approvals. As of June 30, 2017, Folsom Lake Bank had total assets of USD 205,880,000. On a pro forma consolidated basis with Folsom Lake Bank at June 30, 2017, the company would have had approximately USD 1.7 billion in assets and 24 branches throughout California's San Joaquin Valley and Greater Sacramento Region. The Folsom Lake Bank name and physical signage change to Central Valley Community Bank will be completed in February 2018. The 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 1.28 million 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 the company'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 28.47 million.
The Central Valley Community Bancorp and Central Valley Community Bank directors and management team, led by James M. Ford, President and CEO, will continue to lead the combined team of professional bankers. Robert Flautt, President, CEO and Director of Folsom Lake Bank, will remain with Central Valley Community Bank through a transition period. This merger with Folsom Lake Bank represents the fifth acquisition for Central Valley Community Bancorp, which acquired Sierra Vista Bank on October 1, 2016; Visalia Community Bank on July 1, 2013; Service 1st Bancorp and its subsidiary Service 1st Bank on November 12, 2008; and Bank of Madera County on January 1, 2005.
Folsom Lake Bank was established in 2007 as a full-service bank headquartered in Folsom, California Folsom Lake Bank operated offices in Folsom, Rancho Cordova, and Roseville California. Its principal commitment has been to provide the communities surrounding Folsom Lake with a true independent bank for its businesses and residents.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY and as of June 30, 2017 has reported assets of USD 1,444,836,000. Central Valley Community Bank, headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank operates 24 full service offices in Cameron Park, Clovis, Exeter, Fair Oaks, Folsom, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Rancho Cordova, Roseville, Stockton, Tracy, and Visalia, California. Additionally, the Bank operates Commercial Real Estate Lending, SBA Lending and Agribusiness Lending Departments. Central Valley Investment Services are provided by Investment Centers of America, Inc.
Members of Central Valley Community Bancorp's and the Bank's Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Lead Independent Director), Edwin S. Darden, Jr., F. T. "Tommy" Elliott, IV, James M. Ford, Gary D. Gall, Steven D. McDonald, Louis McMurray, and William S. Smittcamp. Sidney B. Cox is Director Emeritus. More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Also, visit Central Valley Community Bank on Twitter and Facebook.
Central Valley Community Bancorp received advisory services and a fairness opinion from Keefe, Bruyette & Woods, and James Dyer, from Buchalter, a professional corporation served as legal advisor. Folsom Lake Bank received advisory services and a fairness opinion from Sandler O'Neill + Partners, L.P., and its legal counsel was Keith Holmes of King, Holmes, Paterno & Soriano, LLP.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Oct 3, 2017|
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