CBC Bancorp has agreed to acquire rival California-based bank holding company Bay Community Bancorp in an all-cash deal valued at $14 per share.

Listed on OTCPink, Bay Community Bancorp is the parent company of Community Bank of the Bay (CBB), a San Francisco Bay Area commercial bank.

On the other hand, CBC Bancorp is the holding company for Commercial Bank of California (CBC), a full-service bank and financial services company that caters to customers in the Los Angeles and Orange counties.

The combined bank holding company will hold nearly $3.5bn in assets after the closing of the deal.

Commercial Bank of California board chairman, CEO, and president Ash Patel said: “The alignment of our two institutions will create a unique banking franchise that better serves our employees and clients.

“Once we combine our two reputable banking platforms, it will create a transformative business bank with expanded product offerings driven by the purpose to serve our communities across California.”

The acquisition of Bay Community Bancorp will move Community Bank of the Bay into private ownership, which will be concentrated among a limited group of shareholders. The latter’s shares will cease to be publicly traded.

Community Bank of the Bay will continue to operate as a division of Commercial Bank of California over the long term.

Community Bank of the Bay CEO William Keller said: “This transaction brings together two complementary institutions with long standing ties to their communities, similar cultures and a relationship-based approach to banking.

“One of the many benefits of this combination is that the combined bank’s greater scale will allow for increased investments in products and services that will directly benefit our clients and enhance productivity. This is the right move for the future of both institutions and we’re excited to work together.”

The transaction is anticipated to close in late 2024 or early 2025, pending the necessary regulatory and shareholder approvals from CBC Bancorp and Bay Community Bancorp, as well as the fulfillment of closing conditions.

Raymond James & Associates served as the financial adviser to CBC Bancorp, with Husch Blackwell acting as its legal adviser.

Janney Montgomery Scott served as the financial adviser to Bay Community Bancorp, with Spierer, Woodward, Corbalis & Goldberg acting as its legal adviser.