Two California-based banks have agreed to merge in a transaction worth an estimated $99.4 million.
Community West Bancshares, based in Goleta, California, is to merge with Central Valley Community Bancorp, headquartered in Fresno. The companies’ respective banking subsidiaries, Community West Bank and Central Valley Community Bank, will also merge.
A joint statement from the two organizations said the Community West Bank brand would be applied to all branches and the combined company post-merger.
The combined company will have approximately $3.6 billion in total assets when the merger completes and a 27-strong branch network across California.
The deal is subject to regulatory and shareholder approval.
“Uniting our two great organizations under the single name of Community West Bank brings our unique brand of relationship banking and experienced bankers to more communities in an expanded service area, with the strength of one of Central California’s largest community banks,” said James Kim, president and CEO of Central Valley Community Bancorp and Bank.
Kim will lead the company post-merger as CEO, while Community West Bank’s current CEO and director Martin Plourd will become president and director of the new company.
Central Valley’s chairman Daniel Doyle will be chair of the merged bank, while Community West’s chairman Robert Bartlein will be vice-chairman.
Plourd said: “By operating as a single, united company, I believe the new Community West Bank will bring unprecedented value to the stakeholders of both companies, who will benefit from the strengthened leadership, enhanced products and services, and an expanded branch network that will give the bank tremendous visibility throughout Central California, from the Sierra Nevada to the sea.”
Separately, another California bank is set to be bought by a specially formed holding company, according to a local report.
Monterey County Bank, the county’s oldest locally owned independent bank, is to merge into PCB Financial, an investment firm based in southern California, according to the Monterey County Weekly.
The bank’s largest shareholder and its chairman, president and CEO, Charles Chrietzberg, is to step down once the deal is complete. He told the newspaper that the deal would enable the bank to expand its operations through new investment.