AmericanWest Bank has executed a definitive agreement to acquire Bank of Sacramento creating a larger combined presence in the Greater Sacramento area.
The transaction, which is expected to close in the first half of 2015, will involve the merger of Greater Sacramento Bancorp, the holding company for Bank of Sacramento, into an affiliate of AmericanWest Bank.
Under the terms of the agreement, shareholders of Greater Sacramento Bancorp will receive $22.05 in cash in exchange for each share, or $60m in the aggregate, subject to possible reduction in certain circumstances.
The combined bank will have about $4.5bn in assets, according to financial information as of June 30, 2014, and nearly 100 banking locations spanning from Seattle to Southern California.
Bank of Sacramento president and CEO William Martin said: "This merger is a great fit for Bank of Sacramento. We share a similar approach to community commercial banking and Bank of Sacramento will help bolster AmericanWest’s presence in the Sacramento market.
"Bank of Sacramento customers will benefit from the expanded resources of the combined company while continuing to enjoy great service from their Bank of Sacramento bankers."
