Sierra Bancorp, the holding company of Bank of the Sierra, has agreed to acquire Coast Bancorp of San Luis Obispo County, California.
Under the deal, the outstanding shares of Coast Bancorp will be entitled to receive aggregate consideration of $3.2m in cash and 581,753 shares of Sierra Bancorp common stock.
Go deeper with GlobalData
The transaction would have a value of $13.8m, or $2.37 per Coast Bancorp common share based on the closing price of Sierra Bancorp common stock on 4 January 2016.
Commenting on the deal, Sierra Bancorp president and CEO Kevin McPhaill said, "Expansion to California’s central coast presents an exciting growth opportunity for Bank of the Sierra. Similar to Coast National Bank, Bank of the Sierra is committed to providing outstanding service coupled with a commitment to improving the communities in which they serve."
Sierra Bancorp, which has approximately $1.7bn in assets, said it expects the acquisition to be immediately accretive to its earnings per share.
"This transaction is positive for our shareholders. The cash consideration allows us to leverage our existing capital and we believe this opportunity will enable us to further deploy capital via lending opportunities in San Luis Obispo and the surrounding communities," McPhaill concluded.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe transaction has been unanimously approved by the boards of Sierra Bancorp and Coast Bancorp.
