FRESNO, Calif.--(BUSINESS WIRE)--
The Board of Directors of Central Valley Community Bancorp (Company)
(NASDAQ:CVCY), a bank holding company headquartered in Fresno,
California and the parent company of Central Valley Community Bank
(Bank), announced today the successful completion of the previously
announced acquisition of Folsom Lake Bank (OTCQB:FOLB), headquartered in
Folsom, California, effective October 1, 2017. As part of the
acquisition, Folsom Lake Bank (FLB) with three full-service branches
located in Folsom, Rancho Cordova, and Roseville merged with and into
Central Valley Community Bank.
The acquisition, which was first announced on April 27, 2017, was
concluded following receipt of Folsom Lake Bank shareholder approval and
all required regulatory approvals. As of June 30, 2017, Folsom Lake Bank
had total assets of $205,880,000. On a pro forma consolidated basis with
Folsom Lake Bank at June 30, 2017, the Company would have had
approximately $1.7 billion in assets and 24 branches throughout
California’s San Joaquin Valley and Greater Sacramento Region. The
Folsom Lake Bank name and physical signage change to Central Valley
Community Bank will be completed in February 2018. The conversion of all
operational systems is planned for the weekend of February 9-11, 2018.
In connection with the merger, the Company is issuing an aggregate of
approximately 1.28 million shares of its common stock and will assume
the stock option plan and outstanding stock options of Folsom Lake Bank.
Based on the closing price of the Company’s common stock on September
29, 2017 of $22.30 per share, the aggregate consideration to be paid to
Folsom Lake Bank common shareholders is approximately $28.47 million.
The Central Valley Community Bancorp and Central Valley Community Bank
directors and management team, led by James M. Ford, President and CEO,
will continue to lead the combined team of professional bankers. Robert
Flautt, President, CEO and Director of Folsom Lake Bank, will remain
with Central Valley Community Bank through a transition period. This
merger with Folsom Lake Bank represents the fifth acquisition for
Central Valley Community Bancorp, which acquired Sierra Vista Bank on
October 1, 2016; Visalia Community Bank on July 1, 2013; Service 1st
Bancorp and its subsidiary Service 1st Bank on November 12, 2008; and
Bank of Madera County on January 1, 2005.
“First and foremost, we are honored to combine our two like-minded
community banks, each known for its incredible customer advocacy, deep
commitment to business, and active service to the community. It has been
a privilege to work with our collective teams to finalize this
acquisition, which will enrich the Company’s future performance with the
addition of truly outstanding new team members and loyal customers who
value the same excellent quality service standards as Central Valley
Community Bank,” stated James M. Ford, President and CEO of Central
Valley Community Bancorp and Central Valley Community Bank.
“We look forward to continued growth in this vital region of California
through the valued referrals of satisfied customers. In less than two
short years, we have expanded our footprint in the Greater Sacramento
Area from one branch focused primarily on commercial lending, to
multiple full-service branches spanning Folsom, Fair Oaks, Cameron Park,
Rancho Cordova and Roseville, helping to fulfill our long-term strategy
for northern California expansion,” concluded Ford.
Folsom Lake Bank was established in 2007 as a full-service bank
headquartered in Folsom, California Folsom Lake Bank operated offices in
Folsom, Rancho Cordova, and Roseville California. Its principal
commitment has been to provide the communities surrounding Folsom Lake
with a true independent bank for its businesses and residents.
Central Valley Community Bancorp trades on the NASDAQ stock exchange
under the symbol CVCY and as of June 30, 2017 has reported assets of
$1,444,836,000. Central Valley Community Bank, headquartered in Fresno,
California, was founded in 1979 and is the sole subsidiary of Central
Valley Community Bancorp. Central Valley Community Bank operates 24 full
service offices in Cameron Park, Clovis, Exeter, Fair Oaks, Folsom,
Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Rancho
Cordova, Roseville, Stockton, Tracy, and Visalia, California.
Additionally, the Bank operates Commercial Real Estate Lending, SBA
Lending and Agribusiness Lending Departments. Central Valley Investment
Services are provided by Investment Centers of America, Inc.
Members of Central Valley Community Bancorp’s and the Bank’s Board of
Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Lead
Independent Director), Edwin S. Darden, Jr., F. T. “Tommy” Elliott, IV,
James M. Ford, Gary D. Gall, Steven D. McDonald, Louis McMurray, and
William S. Smittcamp. Sidney B. Cox is Director Emeritus. More
information about Central Valley Community Bancorp and Central Valley
Community Bank can be found at www.cvcb.com.
Also, visit Central Valley Community Bank on Twitter and Facebook.
Central Valley Community Bancorp received advisory services and a
fairness opinion from Keefe, Bruyette & Woods, and James Dyer, from
Buchalter, a professional corporation served as legal advisor. Folsom
Lake Bank received advisory services and a fairness opinion from Sandler
O’Neill + Partners, L.P., and its legal counsel was Keith Holmes of
King, Holmes, Paterno & Soriano, LLP.
Forward-looking Statements - Certain matters discussed in this
press release constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. All statements
contained herein that are not historical facts, such as statements
regarding the Company’s current business strategy and the Company’s
plans for future development and operations, are based upon current
expectations. These statements are forward-looking in nature and involve
a number of risks and uncertainties. Such risks and uncertainties
include, but are not limited to (1) significant increases in competitive
pressure in the banking industry; (2) the impact of changes in interest
rates, a decline in economic conditions at the international, national
or local level on the Company’s results of operations, the Company’s
ability to continue its internal growth at historical rates, the
Company’s ability to maintain its net interest margin, and the quality
of the Company’s earning assets; (3) changes in the regulatory
environment; (4) fluctuations in the real estate market; (5) changes in
business conditions and inflation; (6) changes in securities markets;
(7) the expected cost savings, synergies and other financial benefits
for the acquisition might not be realized within the expected time
frames or at all; and (8) the other risks set forth in the Company’s
reports filed with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2016.
Therefore, the information set forth in such forward-looking statements
should be carefully considered when evaluating the business prospects of
the Company.
Central Valley Community Bancorp will undertake no obligation to revise
or publically release any revision or update to the forward looking
statements to reflect events or circumstances that occur after the date
on which statements were made.
Central Valley Community Bancorp has filed a registration statement with
the SEC, including a proxy statement/prospectus and other relevant
documents concerning the proposed transaction. This communication does
not constitute an offer to sell or the solicitation of an offer to buy
any securities or a solicitation of any vote or approval. WE URGE
INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS
TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED
BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. The proxy statement/prospectus is available for
free, both on the SEC website (http://www.sec.gov)
and from Central Valley Community Bancorp and Folsom Lake Bank.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171002005336/en/
Central Valley Community Bancorp
Debbie Nalchajian-Cohen,
559-222-1322
Cell: 559-281-1312
Source: Central Valley Community Bancorp