Latest News
Folsom Lake Bank Wins Shareholder Nod for USD 33.6m Central Valley Community Bancorp Buyout
Friday 11 August 2017

11 August 2017 - Shareholder of Folsom, California, US-based Folsom Lake Bank (OTCQB: FOLB) have approved the company's deal to be acquired by Fresno, California, US-based Central Valley Community Bancorp and its Central Valley Community Bank (NASDAQ: CVCY) in a USD 33.6m, the company said on Friday.

This deal was announced in April

The transaction, subject to customary closing conditions, is expected to be completed as of 1 October 2017, with the conversion of all operational systems to be completed in 1Q18.

Under the terms of the agreement, Folsom Lake Bank shareholders will be entitled to receive 0.80 shares of Central Valley Community Bancorp stock per Folsom Lake Bank share.

Central Valley Community Bancorp will assume the stock option plan and outstanding stock options of Folsom Lake Bank as part of the transaction.

Based on the closing price of Central Valley Community Bancorp on April 27, 2017, the fully diluted transaction consideration is USD 33.6m, or USD 18.74 per Folsom Lake Bank common share.

The Central Valley Community Bancorp board of directors and the Central Valley Community Bank executive management team will continue to lead the combined team of bankers. President, CEO and director of Folsom Lake Bank will join Central Valley Community Bank through a transition period.

This merger with Folsom Lake Bank will become the fifth acquisition for Central Valley Community Bancorp's fifth acquisition.

As of March 31, 2017, on a pro forma consolidated basis with Folsom Lake Bank, Central Valley Community Bancorp would have had approximately USD 1.7bn in total assets. Existing Central Valley Community Bancorp shareholders will own approximately 90.5% of the outstanding shares following the merger and Folsom Lake Bank shareholders are expected to own approximately 9.5%.

Central Valley Community Bank operates 22 full-service offices throughout California's San Joaquin Valley and Greater Sacramento Region. Additionally, the bank maintains commercial real estate, agribusiness and sba lending departments.

Folsom Lake Bank reported assets of USD 202.7m as of March 31, 2017.

Central Valley Community Bancorp was advised by Keefe, Bruyette and Woods, and James Dyer, from Buchalter, a professional corporation served as legal advisor. Folsom Lake Bank was advised by Sandler O'Neill + Partners, L.P., and its legal counsel was Keith Holmes of King, Holmes, Paterno and Soriano, LLP.
Details
Date Published: 11/08/2017
Target: Folsom Lake,  Bank
Country: USA
Deal Size: 33.6m (USD)
Sector: Banking/Financial Services
Type: Corporate acquisition
Financing: Stock
Status: Agreed
Vendor:
Buyer: Central Valley Community Bancorp
Buyer Advisor: Keefe, Bruyette and Woods , Buchalter
Comment:


Options