FNB Bancorp, parent company of First National Bank of Northern California, has reached an agreement to purchase Valley Community Bank (VCB), as part of its expansion plan in the region.
As per the terms of the contract, for each share of VCB common stock outstanding, its shareholders will receive 0.1135 shares of FNB Bancorp common stock.
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Upon completion of the transaction, VCB will integrate with the acquirer bank, which will continue to operate as "First National Bank of Northern California."
The transaction is likely to qualify as a tax-free exchange for the shareholders of VCB who receive FNB Bancorp common stock.
Unanimously approved by the board of directors of VCB and the boards of directors of FNB Bancorp and the bank, the transaction is expected to conclude during third quarter of 2014, following regulatory approvals as well as satisfaction of other customary closing conditions.
Western Financial acted as financial advisor, while Dodd Mason George served as legal counsel for FNB Bancorp and First National Bank of Northern California oversaw this transaction.
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By GlobalDataValley Community Bank was advised by Monroe Financial Partners, as financial advisor, and Bryan Cave, as legal counsel.
Established in Pleasanton in 1998, Valley Community Bank offers banking services to professionals, local businesses and other customers from its full-service offices in Pleasanton, Livermore and San Jose. It had gross loans of $85m, total assets of $139m and total deposits of $120m, at 31 March 2014.
