US-based BayCom Corp, the holding company for United Business Bank, and Grand Mountain Bancshares (GMB), the holding company for Grand Mountain Bank, FSB, have signed a merger agreement under which BayCom will acquire GMB in an all-cash transaction worth around $13.9m.
Under the terms of the Agreement and Plan of Merger, GMB will be merged with and into BayCom, and Grand Mountain Bank with and into United Business Bank.
After the merger, each GMB shareholder will receive $3.40 in cash in exchange for each share of GMB common stock.
GMB had around $130.6m in assets, $85.6m in loans, $118.1m in deposits and $12.2m in shareholder’s equity at the end of September 2019.
The transaction is expected to expand BayCom’s presence in Colorado. GM Bank provides services through its four full-service locations in Grand County and a loan office in Summit County.
Upon completion of the transaction, the combined company will have around $2.2bn in assets, $1.5bn in loans and $1.8bn in deposits.
Following the acquisition, United Business Bank will have 36 full-service locations, with 17 in California, two in Washington, six in New Mexico and 11 in Colorado.
The boards of directors of BayCom and GMB have approved the agreement and plan of merger.
The transaction is expected to be closed in the first quarter of 2020, subject to customary conditions, including regulatory approval and approval by the GMB shareholders.
BayCom president and CEO George Guarini said: “We are very pleased to have the opportunity to expand our presence in the Colorado market and look forward to serving Grand Mountain Bank’s clients.
“Our expanded family will soon have the pleasure of establishing new long lasting client relationships, enhancing our position in the market and building on an already strong foundation.”
Grand Mountain Bank president and CEO Frank DeLay said: “We are very happy to join BayCom and believe our combination with United Business Bank will provide significant value to our shareholders, customers and employees.
“We also believe this is a natural fit which increases lending capabilities, expands capital resources and provides a more expansive product offering in our Colorado business communities.”