Southern California Bancorp and California BanCorp trigger $233.6m “true merger of equals”
Southern California Bancorp and California BanCorp, the holding companies behind Bank of Southern California and California Bank of Commerce respectively, have instigated a “true merger of equals” to enhance their service offerings for the state’s mid-market businesses.
California BanCorp to merge with Southern California Bancorp
The $233.6 million all-stock merger, which will combine assets sporting a value of $4.6 billion, is expected to close in Q3 2024, subject to customary closing conditions and the approval of both parties’ shareholders.
If actioned, Southern California Bancorp shareholders will own approximately 57.1% of the combined entity while California BanCorp shareholders will seize the remaining 42.9%.
With plans to be headquartered in San Diego, the combined entity will claim a regional footprint containing Los Angeles, Orange, Sand Diego, and Ventura counties in the south and Contra Costa, Alameda, Sacramento, and Santa Clara counties in the north.
David Rainer, chairman and CEO of Southern California Bancorp, says he anticipates the deal increasing the “size and scale” of its service offerings and lending capacity, while also tapping into “the two most attractive markets in California” in an attempt to drive profitability.
Steven Shelton, CEO of California BanCorp, adds that he expects the merger to “enhance our ability to continue adding attractive full banking relationships with commercial clients that provide operating deposit accounts and high-quality lending opportunities”, in addition to “enabling us to move up market and work with larger businesses”.
“This merger is bringing together two highly compatible institutions with similar cultures, a relationship-based approach and commercial banking expertise, with strong deposit bases that will offer opportunities for growth in various lending verticals.”
Rainer will move to the position of executive chairman of the combined company, bank and boards, while Shelton is due to join him and will serve as CEO and director.
