Central Valley Community Bancorp (CVCY) in Fresno, Calif., is buying Visalia Community Bank (VSMU) in Visalia, Calif., for roughly $22 million.
The $887 million-asset parent of Central Valley Community Bank said Thursday it would pay equal parts stock and cash for the $200 million-asset Visalia, which has five branches.
Visalia's shareholders would receive roughly $26 and 2.97 shares of Central Valley for each share of common stock they own.
The deal is the third acquisition in eight years for Central Valley, which bought Service 1st Bancorp in November 2008 and the Bank of Madera County in January 2005.
"This growth allows Central Valley Community Bank to further accommodate an increasing customer base in the communities of Visalia and Exeter," Daniel Doyle, Central Valley's chief executive, said in a news release. "We believe that the expansion into Tulare County will provide long-term opportunities for businesses, customers, employees, the community and our bank."
"While the nation has seen a continuing trend in bank consolidations through mergers and acquisitions in recent years, few of these 'bank marriages' promise a better fit than the marriage between Visalia Community Bank and Central Valley Community Bancorp," Tom Beene, Visalia's chief executive, added in a news release.
The combined company would have roughly $1 billion in assets and 23 branches throughout California's San Joaquin Valley.
Visalia's chairman, F.T. Elliot 4th, will join Central Valley's board upon completion of the deal, which is expected to close in the second quarter.
Sandler O' Neill and the law firm of Downey Brand advised Central Valley on the deal. FIG Partners and the law firm of King, Holmes, Paterno & Berliner advised Visalia.
