California-based Suncrest Bank has agreed to acquire local lender CBBC Bancorp in a cash-stock deal worth $62.5m.
Under the arrangement, CBBC Bancorp, the parent of Community Business Bank, will merge with and into Suncrest Bank.
The merger adds $325m in assets and two branches to Suncrest Bank’s existing portfolio of $529m in assets and five branches.
As per the agreed terms of the deal, CBBC shareholders will be entitled to receive $23.75 in cash or a fixed exchange ratio of 2.262 shares of Suncrest Bank common stock.
Following the merger, West Sacramento and Lodi branches of CBBC will retain the Community Business Bank brand, as a division of Suncrest Bank.
Suncrest Bank president and CEO Ciaran McMullan will serve as the president and CEO of the combined group. CBBC CEO John DiMichele and CBBC president Chad Meyer will join the merged entity’s board as non-executive directors.
The deal is expected to be completed by the second quarter of 2018, subject to regulatory and shareholder approvals.
“This is a truly transformational deal for Suncrest, with the potential to double our assets and double our market capitalization while significantly improving our earnings power. The completion of this transaction will make Suncrest a formidable competitor in the Central Valley banking marketplace, and positions us for continued profitable growth in key markets such as the Greater Sacramento area and the South Valley,” McMullan noted.