Written by The Business Journal Staff
Fresno-based Central Valley Community Bancorp and Sierra Vista Bank, headquartered in Folsom, jointly announced today the signing of a definitive merger agreement. Under the terms of the agreement, Sierra Vista Bank, with three full service branches located in Folsom, Fair Oaks and Cameron Park, will merge with Central Valley Community Bank and operate under the Central Valley Community Bank name.
The transaction is subject to customary closing conditions, including regulatory approvals and Sierra Vista Bank shareholder approval.
The Central Valley Community Bancorp and Sierra Vista Bank boards of directors have already approved the transaction, which is expected to close in the fourth quarter of 2016.
Based on the closing stock price of Central Valley Community Bancorp on Thursday, the transaction, including redemption of certain outstanding Sierra Vista Bank securities immediately prior to the closing, would have a value of $24 million, or $5.22 per Sierra Vista Bank common share. However, the deal value will fluctuate with changes in Central Valley Community Bancorp’s stock price through the closing date.
The Central Valley Community Bancorp board of directors and the Central Valley Community Bank executive management team, led by President and CEO James Ford, will continue to lead the combined team of professional bankers. Gary D. Gall, president, CEO and Director of Sierra Vista Bank, will join Central Valley Community Bancorp’s board of directors upon completion of the merger.
Sierra Vista Bank will become the fourth acquisition for Central Valley Community Bancorp, which acquired Visalia Community Bank in July 2013, Service 1st Bancorp and its subsidiary Service 1st Bank in November 2008 and Bank of Madera County in January 2005.
As of March 31, 2016, Central Valley Community Bancorp had approximately $1.5 billion in total assets, with 23 branches throughout California’s San Joaquin Valley.
“Sierra Vista Bank’s community banking culture, leadership and dedication to supporting small businesses and the greater Sacramento region mirrors the values that Central Valley Community Bank has lived by for the past 36 years,” Ford said. “Once completed, the merger will complete another step in our long-term strategy to increase our northern Valley presence which began 14 years ago in Sacramento County’s Gold River business community.”
“By combining our two great banks,” Ford added, “we believe our growth will enhance opportunities for businesses, customers, employees, the community and our bank.”
“Sierra Vista Bank was founded nine years ago with the goal to bring true community banking to the Folsom area by offering a financial partnership for small businesses and to help grow the local economy,” Gall said. “Merging with Central Valley Community Bank will allow our customers and other small businesses within the region to grow and expand with a banking partner whose values and dedication to businesses, customer service and the community so closely match our own.”