Central Valley Community Bank gets OK to buy Folsom Lake Bank
July 12, 2017
• Fresno bank expands further into Sacramento area
• “Will … allow Central Valley Community Bank to increase our presence throughout the region”
Central Valley Community Bank says it has received the required regulatory approval to acquire Folsom Lake Bank Folsom Lake Bank (OTCQB: FOLB).
“The addition of their Greater Sacramento branches will … allow Central Valley Community Bank to increase our presence throughout the region,” says James Ford, president and CEO of Central Valley Community Bancorp (NASDAQ: CVCY) and Central Valley Community Bank.
Final closing depends on a special Folsom Lake Bank shareholder meeting scheduled for August 10 as well as certain closing conditions.
The transaction is expected to be completed on October 1, and the Folsom Lake Bank name change to Central Valley Community Bank will also be effective then.
“This merger of like-minded independent community banks will provide long-term opportunities for the businesses, customers, employees, regional communities and our bank,” Mr. For says.
The okay for the deal was given by the Federal Deposit Insurance Corporation and the California Department of Business Oversight.
The agreement was first announced in April.
It’s an all-stock deal in which Folsom Lake Bank shareholders will be entitled to receive 0.80 shares of Central Valley Community Bancorp stock per Folsom Lake Bank share. Existing Central Valley Community Bancorp shareholders will own approximately 90.5 percent of the outstanding shares following the merger and Folsom Lake Bank shareholders are expected to own approximately 9.5 percent.
Based on the closing price of Central Valley Community Bancorp on April 27, the fully diluted transaction consideration was $33.6 million, or $18.74 per Folsom Lake Bank common share.