Nov 27 - Coronado, Calif.-based Coronado First Bank (OTCQB: NADO) and La Jolla, Calif.-based Private Bancorp of America and its wholly owned subsidiary San Diego Private Bank haveannounced the completion of a definitive agreement whereby Coronado First Bank and San Diego Private Bank will merge, pending regulatory and shareholder approval, and subject to customary closing conditions. The merger will broaden service offerings and resources of both banks while providing greater operational and regulatory efficiencies.
The agreement provides that at the effective time of the merger, all of the outstanding shares in San Diego Private Bank will be exchanged for shares of Coronado First Bank at a fixed exchange ratio of 0.545 shares of Coronado First Bank for each share of San Diego Private Bank, for an implied deal value of approximately $15.5 million. Immediately prior to the merger of Coronado First Bank and San Diego Private Bank, the holding company Private Bancorp of America will be merged with and into San Diego Private Bank such that prior Private Bancorp of America shareholders will own all of the outstanding shares of San Diego Private Bank. The merger is expected to be completed in the first quarter of 2013.
In a joint statement Maria P. Kunac, president and CEO of Coronado First Bank and Selwyn Isakow, chairman, president and CEO of San Diego Private Bank, said, "Both banks operate in complementary markets emphasizing personal client service. Bringing these two banks together to form a larger and stronger organization focused on growth will provide banking clients with broader products and services at a time when the Southern California region is entering its next growth cycle."
Coronado First Bank had $166 million in assets and $28.4 million in capital as of Sept. 30, 2012. The bank has branches in Coronado and downtown San Diego and services the needs of small businesses and real estate investors throughout southern California. San Diego Private Bank was formed in August 2006 to focus on providing private banking services to successful individuals and has since successfully expanded into commercial and SBA lending. It had $129 million in assets and $13.1 million in capital as of Sept. 30, 2012.
"The merger is a great opportunity for us to provide our clients increased credit capacity and expanded access to tailored banking products and services. This partnership presents an almost seamless merger opportunity because of the two banks' similar operating styles and systems," said Kunac. "For clients of both banks, we will continue to offer the highest quality of personal service from the friendly and efficient staff in our offices. The combined bank will have the capacity to enhance the products and services that we will be able to offer you, our valued clients."
Isakow added, "This merger is about two community banks that complement each other in size, products, service commitment, and their geographic focus. Coronado First Bank brings a wealth of experience in all aspects of real estate lending and superior credit administration while San Diego Private Bank brings a culture of unparalleled client service and customized financing solutions as well as a full complement of government guaranteed small business loan products."
The new bank will adopt the name of San Diego Private Bank and will be headquartered in Coronado. It will continue to operate all of the current locations, including Coronado (where it will retain the Coronado name), downtown San Diego and La Jolla. Representatives of both banks will be appointed to the surviving bank's board of directors. Isakow will serve as chairman of the board and Kunac will serve as president and CEO of the surviving bank.