The aggregate value of the transaction has been determined at $42.9m, which comprises the planned redemption of outstanding CNB stock options and warrants for cash.
Approved already by the boards of directors of the both companies, the transaction is pending approval of CNB shareholders as well as regulatory agencies and customary closing conditions and likely to conclude in the third quarter of 2013.
Sterling vice chairman and chief lending officer David DePillo said, "In addition to a high quality, relationship-based loan portfolio, CNB also brings us a scalable equipment leasing business that fills a void in our current commercial product set."
CNB had assets of nearly $242.7m, loans of $146.3m, deposits of $211.4m, and shareholders’ equity of $30.1m, as of 31 March 2013.
Bingham McCutchen and Richard E Knecht served as the legal advisor to the Sterling and CNB, respectively, while Keefe Bruyette & Woods acted as the financial advisor to CNB.
Operating as a principal subsidiary of Sterling Financial, the bank provides banking products and services such as mortgage lending, and trust and investment to individuals, small businesses, corporations and other commercial organizations.
Sterling had assets of $9.26bn and operated depository branches in Washington, Oregon, Idaho and California, as of 31 March 2013.
