A Santa Barbara, Calif.-based holding company founded earlier this year has agreed to pay $67.9 million to acquire a community bank in Oakland.
Faciam Holdings announced late Wednesday that it will pay $56.13 per share in cash for the $281 million-asset Summit Bancshares. Current shareholders will also receive a to-be-determined special dividend when the transaction closes in mid-2019.
Summit’s bank subsidiary, Summit Bank, operates three branches in the Oakland area.
According to a news release announcing the deal, Summit’s management team, including founder and Executive Chairman Shirley Nelson, CEO Tom Duryea and President and Chief Operating Officer Steve Nelson, will continue to manage the company’s day-to-day affairs. Faciam will appoint six directors to serve on Summit’s 11-member board.
Faciam said in the press release that it is “committed to furthering Summit’s business model … with the benefit of additional capital and accessibility to new products and services.”
Neither company responded to further requests for comment.
Summit, founded in 1982, is a business bank, with the lion’s share of its $163 million loan portfolio concentrated in commercial real estate and commercial-and-industrial credits, according to the Federal Deposit Insurance Corp.
Its net income in the first nine months of this year $2.2 million, up 19% from the like period in 2017. That puts Summit on pace to record its best results since 2014, when it earned $2.92 million. Profits still remain below the pre-crisis highs reached in 2006 and 2007. Net earnings topped $3.6 million both years.
Faciam was incorporated in California in February. Its CEO is Andrew Nash.
