Suncrest Bank in Visalia, Calif., has agreed to buy CBBC Bancorp in West Sacramento, Calif.
The $485 million-asset Suncrest also announced in a press release Tuesday that it had a fully subscribed $25 million capital raise of common stock. The funds will be used to support the $62.5 million purchase of the $315 million-asset CBBC and future organic growth.
“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,” Ciaran McMullan, Suncrest’s president and CEO, said in the release.
“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 added.
This would be Suncrest’s third acquisition since it bought Sutter Community bank in December 2015. McMullan
The deal priced CBBC at 186% of tangible book value. Suncrest said the acquisition should be immediately accretive to its earnings per share.
John DiMichele, CBBC's chief executive, and Chad Meyer, the company’s president, will join Suncrest’s board as non-executive directors. Once the deal closes, CBBC’s two branches will continue to operate under the Community Business Bank name as a division of Suncrest Bank.
MJC Partners and King Holmes Paterno & Soriano advised Suncrest. Sandler O’Neill and Weintraub Tobin Chediak Coleman Grodin Law Corp. advised CBBC. MJC Partners also served as the placement agent for Suncrest’s offering.
