Northern California National Bank in Chico has agreed to be sold to an investor group.
The $310 million-asset bank said in a press release Monday that the group is looking to take over ownership through a tender offer. The unnamed investors would pay $50 million, or $33.07 a share, to NorCal’s shareholders, representing a 61% over the bank’s closing price on Friday.
Todd Lewis, NorCal’s president and CEO, will remain in an active leadership role with other members of the bank’s senior management after the deal closes.
The pending sale is “a unique opportunity to provide compelling value to our shareholders while continuing to deliver our customers exceptional service without any disruption,” Lewis said in the release.
“The acquiring investors are committed to maintaining the bank’s high-quality customer service with a long-term view that prioritizes the bank’s positive contribution to the Chico community,” Lewis added.
The proposed transaction is subject to shareholders' selling at least 67% of the bank’s outstanding stock. The deal is expected to close in the second half of this year.
NorCal earned $3.2 million in 2020, an 11% increase from a year earlier.
Piper Sandler; Kirton McConkie; and Manatt, Phelps & Phillips advised NorCal. Hovde Group and Luse Gorman advised the investor group.
