February 20 – Security First Bank has announced the execution of a definitive agreement for the merger of Security First Bank into Los Angeles based SunPac Financial. Under the terms of the definitive agreement for the merger, shareholders of Security First Bank shareholders will have the right to receive $10.50 in cash for each share of stock. The agreement has been approved by the boards of both companies. The transaction will close following the receipt of regulatory and shareholder approval, which is expected to occur by the end of the second quarter of 2015.
“We are so pleased to join forces with Security First Bank, which will serve as our initial platform providing the necessary infrastructure to expand banking activities in Fresno and into the Los Angeles market,” said V. Charles “Charlie” Jackson, CEO of SunPac Financial. “Our plan is to allocate capital to expand Security First’s presence, lending activities and commitment to the Fresno market. In addition, we plan to establish a commercial and private banking presence in the Los Angeles market.”
The combined expertise will provide a strong platform allowing an affinity of successful partnerships between Fresno and Los Angeles business communities. The headquarters of SunPac Financial will be in downtown Los Angeles, however, the Security First office location will remain and conduct business as usual.
“This merger will bring together exceptional talent, technology and the potential of growth through expanded and new business relationships and additional capital,” commented Security First CEO Robert Hemsath. “The value-added capital and products will truly benefit our business community.”
SunPac Financial is advised by Keefe, Bruyette & Woods as its financial advisor and Manatt, Phelps & Phillips, LLP as its legal counsel. Security First Bank was advised by MJ Capital Partners, LLC as its financial advisor and Grady and Associates as its legal counsel.
About SunPac Financial
In July, 2014, SunPac, LLC, was formed as an investment vehicle to explore developing a commercial and private bank serving the Southern California marketplace. The management team is comprised of seasoned banking executives who have had experience in leading and operating other California based community banks. SunPac Financial, Inc. is a subsidiary that was set up to facilitate the bank merger.
About Security First Bank
Founded in 2007 by local investors, Security First Bank is devoted to providing superior banking products and services at competitive rates while maintaining personal banking relationships. Security First Bank’s primary goal is to help businesses be more successful, productive and efficient by providing personal one on one service, financial expertise and the latest banking technology. Security First Bank is a solid and secure financial institution that puts the customer first and works hard to deliver exceptional results. Additional information can be found at www.securityfirstfresno.com.
This press release may contain forward-looking statements regarding SunPac Financial, Security First Bank and the proposed merger. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors: regulatory approvals of the merger may not be obtained or adverse regulatory conditions may be imposed in connection with such regulatory approvals and conditions to the closing of the merger may not be satisfied. There is no obligation to revise or publicly release any revision or update to reflect events or circumstances that occur after the date on which such statements were made.