The acquisition, which was announced on 25 June 2015, concluded after it received shareholder approval from Sutter Community Bank and other statutory approvals.
Sutter Community Bank had $68.3m in assets and Suncrest Bank had $218.0m in assets as on 30 September 2015. The combined entity is estimated at $286.3m in assets.
Through this transaction, Suncrest Bank is issuing 1,144,414 Suncrest Bank common stock shares to the shareholders of Sutter Community Bank. The consideration payable to Sutter Community Bank, which was arrived at based on the closing price of Suncrest Bank’s common stock on 11 December 2015 of $7.35 per share, has amounted to $8.4m.
Suncrest Bank president and CEO Ciaran McMullan said: "The transaction creates a stronger community and agricultural bank with an expanded presence in the Central Valley of California. Our newly combined company has the ability to offer loans up to $10 million to qualified borrowers throughout the North and South Valley, and we are excited about the growth potential this geographic expansion gives us."
Sutter Community Bank former chairman Daniel C. Jacuzzi, who joined Suncrest Bank as a director said: "The combination is a very positive event for the shareholders, customers and employees of both institutions. Our team is excited about the business opportunities and client services which will result from the merger of Sutter Community Bank and Suncrest Bank. We have a combined management group dedicated to providing our target market with a high level of personal service and products."
The previous holders of Sutter Community Bank common stock received shares of Suncrest Bank common stock worth 22.9% of the outstanding shares of Suncrest Bank common stock, following the closure of the transaction.
Suncrest Bank’s board of directors will have two new additions with Daniel C. Jacuzzi and Matthew Pomeroy, who were previously members of Sutter Community Bank board of directors.
Other former directors of Sutter Community Bank have formed Local Market Advisory Board and will be active participants in the activities of the newly formed bank.
