CVCB completes acquisition of Folsom Lake Bank
Central Valley Community Bank now owns 24 branches in San Joaquin Valley, Greater Sacramento area with assets of $1.7 billion
FRESNO – One of the Valley’s biggest banks just completed a merger to increase its scope. The Board of Directors of Central Valley Community Bancorp, the parent company of Central Valley Community Bank (CVCB), which has branches in Exeter and Visalia, announced Monday, Oct. 2 that it has completed its acquisition of Folsom Lake Bank.
Headquartered in Folsom, Calif., Folsom Lake Bank (FLB) and its 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 and became effective on Oct. 1, 2017. As of June 30, 2017, Folsom Lake Bank had total assets of $205,880,000.
The acquisition of Folsom Lake Bank brings CVCB assets to approximately $1.7 billion as of June 30, 2017.
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 Feb. 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 Sept. 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.
“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.
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 Jan. 1, 2005.
“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 fullservice branches spanning Folsom, Fair Oaks, Cameron Park, Rancho Cordova and Roseville, helping to fulfill our long-term strategy for northern California expansion,” concluded Ford.
Central Valley Community Bank now 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.