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California banks to combine in $234 million 'merger of equals'

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California banks to combine in $234 million 'merger of equals'


The deal involving Southern California Bancorp and California BanCorp, expected to close in the third quarter, would form a $4.6 billion-asset lender with a footprint spanning San Diego as well as Greater Los Angeles and the San Francisco Bay Area.

Southern California Bancorp in San Diego and Oakland-based California BanCorp said they would merge in a $233.6 million, all-stock deal that would create a combined company with $4.6 billion of assets spanning the major metropolises of the country’s most populous state.

The $2.4 billion-asset Southern California Bancorp, the parent of Bank of Southern California, and the $2 billion-asset California BanCorp, the holding company for California Bank of Commerce, jointly announced the deal on Tuesday and billed it as a “merger of equals.”

However, the transaction, slated to close in the third quarter, would give Southern California Bancorp shareholders 57.1% ownership of the outstanding shares of the combined company. California BanCorp investors would own the rest. The deal consideration was based on Southern California Bancorp’s Jan. 29 closing stock price.

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The merged bank would be based in San Diego and also cover Greater Los Angeles and the San Francisco Bay Area.

It marked the second large bank deal to date in the West in the new year. Seattle-based HomeStreet in mid-January said it planned to sell itself to FirstSun Capital Bancorp in Denver for $286 million.

The transactions come on the heels of a sluggish 2023 for M&A. There were only 98 deals announced last year, according to S&P Global Market Intelligence. That was down from 161 in the prior year. Buyers largely moved to the sidelines last year amid elevated regulatory scrutiny in the wake of regional bank failures and recession fears induced by a surge in interest rates. 

Jon Winick, CEO of bank consultancy Clark Street Capital, said the M&A headwinds “continue to blow” early in 2024. But he also said the economy has proven resilient and in growth mode, and this could give more bank executives confidence to jump back into the deal fray as community lenders need to bulk up to compete with larger peers.

The California banks said Tuesday their merger would unite two institutions that focus on middle market lending with complementary footprints, creating scale needed to further invest in technology and better manage risk, increase efficiency and provide customers with more products and services.

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“Our two companies share the same vision and values with a customer-centric focus on providing outstanding service to mid-market businesses. We believe this combination, resulting in increased size and scale, will drive improved profitability and increase shareholder value,” David Rainer, chairman and CEO of Southern California Bancorp, said in a press release announcing the deal.

“It also offers customers increased product offerings and lending limits, as well as access to branches in both Northern and Southern California. The merger will also provide employees of both companies with increased career opportunities,” he added.

Rainer would become executive chairman of the combined parent company and bank as well as the boards of both.

Steven Shelton, CEO of California BanCorp, would assume that title of the merged company and bank. He would also be a director.

“The expanded scale and capabilities we will have as a result of this merger will enhance our ability to continue adding attractive full banking relationships with commercial clients that provide operating deposit accounts and high quality lending opportunities,” Shelton said in the release. The deal also would create opportunities to “move up market and work with larger businesses.”

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The combined company’s board would consist of six directors from both banks. A lead independent director would be appointed after closing.

Additionally, Richard Hernandez, president of Southern California Bancorp, would retain that title post-merger.

Thomas Sa, who is president, chief financial officer and chief operating officer of California BanCorp, will serve as COO of the combined company and bank.

Thomas Dolan, CFO and COO of Southern California Bancorp, will serve as CFO of the combined company and chief strategy officer of the bank.

The companies said they would evaluate rebranding with new names and logos at the close of the transaction. The combined company’s common stock would continue to trade on the Nasdaq Capital Market.

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The merged company’s Southern California footprint would include Bank of Southern California’s 13 branches that serve Los Angeles, Orange, San Diego and Ventura counties, as well as the Inland Empire of California. Its Northern California territory would include the California Bank of Commerce branch in Contra Costa County and its four loan production offices serving Alameda, Contra Costa, Sacramento and Santa Clara counties.

It would have $2.6 billion of loans and $3.8 billion of deposits.

The companies estimated the deal would create cost savings equal to about 15% of their combined noninterest expense base. They expect one-time, pre-tax merger expenses of $19.5 million.

They also projected 2025 earnings per share accretion of 48%. They expect to earn back tangible book value dilution of 18% in less than three years.



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California welcomes its newest city

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California welcomes its newest city


A community of nearly 30,000 residents is set to become California’s newest city. 

Mountain House in San Joaquin County will incorporate on July 1, several months after voters showed overwhelming support for cityhood. 
•Video Above: Coverage of Mountain House cityhood vote (from March 2024)

Mountain House is in the southwestern part of the county, about 30 miles southwest of Stockton and 50 miles east of Oakland.

To celebrate cityhood, Mountain House announced officials are holding a commemoration ceremony as part of a Fourth of July celebration. 

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Mountain House is San Joaquin County’s eighth city and California’s 483rd city, as well as the state’s newest since 2011. 

It has about 10,000 registered voters and is a growing community with about 28,000 residents. 

On the same March ballot where voters opted for cityhood, they also decided on a proposed mayor and city council and determined how future elections would work. 

A majority of voters decided on an “at-large” process to determine how city council members will be elected.

An “at-large” election means anyone who lives in the city could run for a city council seat, instead of using a system of districts with one member from each. In Mountain House, the candidates with the most votes will become city council members. 

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Prior to the cityhood vote, Mountain House was governed by an elected, five-member community services district board. 



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20th & Ryan Coogler’s Proximity Media Adapting ‘California Bear’ Novel From Gary Lennon & Duane Swierczynski

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20th & Ryan Coogler’s Proximity Media Adapting ‘California Bear’ Novel From Gary Lennon & Duane Swierczynski


EXCLUSIVE: 20th has landed the rights to a feature adaptation of the New York Times bestselling novel California Bear from Duane Swierczynski. Gary Lennon will write the feature alongiside Swierczynski with Ryan Coogler’s Proximity Media producing, sources tell Deadline.

Swierczynski’s latest novel is a thriller that follows four unlikely vigilantes whose decision to take justice into their own hands pits them against the villain behind California’s coldest murder case.

California Bear is 20th’s first project with Proximity. Rashonda Joplin, 20th’s Director of Production, and Catherine Hughes, Creative Executive, will be shepherding the project. 20th’s Head of Literary Affairs, Clare Reeth was instrumental in bringing the book into the studio. Ryan Coogler, Zinzi Coogler, Sev Ohanian produce through their company, Proximity Media. Rebecca Cho will exec produce and oversee the project along with Hannah Levy for Proximity Media.

In March, Lennon extended his development deal with Lionsgate Television and was previously under an overall deal at Starz. Currently, he is the showrunner and executive producer of the Power spinoff series Power Book IV: Force continuing his work from Season 2 and is in production on the third and final installment of the Chicago-based crime drama. He was also executive producer of the mothership series for Starz which earned him two NAACP Image Awards. Additionally, he’s partnered with Lionsgate Television on P-Valley and Hightown for Starz and the hit Netflix series Orange Is the New Black. Lennon is represented by CAA, M88 and attorney Erik Hyman.

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Swierczynski is the New York Times bestselling and two-time Edgar-nominated author of 15 novels including Expiration Date, Canary and the forthcoming California Bear, as well as the graphic novels Breakneck and Redhead. Along with James Patterson, he co-created the Audible Original The Guilty and co-wrote the private eye thriller Lion & Lamb. He’s also written more than 250 comic books including Deadpool, The Immortal Iron Fist, Punisher, Birds of Prey and Star Wars: Rogue One. His first short story collection, Lush & Other Tales of Boozy Mayhem, was recently published by Cimarron Street Books. Swierczynski is represented by Story Driven and McKuin, Frankel Whitehead.

Proximity Media’s film projects include two-time Academy Award-winning Judas and the Black Messiah, Space Jam: A New Legacy and Creed III which grossed over $275M theatrically. Upcoming, Proximity is currently in production on Ryan Coogler’s untitled event film for Warner Bros. starring Michael B. Jordan. It’s set for a March 2025 IMAX release. Additionally, the company is in post-production on Marvel’s Ironheart miniseries. Proximity also produced the documentary Homeroom with Hulu, co-produced Stephen Curry: Underrated with Apple Original Films, A24 and Unanimous Media, as well as Anthem, with Onyx Collective as part of the company’s overall deal with Disney Television. They are repped by WME and Jonathan Gardner, Esq.



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Gardeners make chilling discovery in front of California family’s home after cops warned residents to check their yards

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Gardeners make chilling discovery in front of California family’s home after cops warned residents to check their yards


Gardeners in Southern California made a chilling discovery outside a family’s home just a week after the same strange item was found in another yard. 

In a chilling discovery, gardeners stumbled upon a hidden camera while working at a home on the 200 block of Via El Encantador on April 16, according to the Santa Barbara County Sheriff’s Office. 

The recording device was found pointing at the single family home, hidden under a landscaped area of the front yard. 

It was covered in camouflage tape and hidden amongst plants, the police said. 

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Cops have urgently warned homeowners to survey their properties as hidden cameras linked to ‘burglary tourism’ are on the rise in crime-ravaged Southern California.

A hidden camera with a memory card (right), a power cable wrapped in camouflage tape (left) and a large battery pack were discovered in the yard of a home in Santa Barbara in April 

Gardeners working at a home on the 200 block of Via El Encantador on April 16, according to the Santa Barbara County Sheriff¿s Office

Gardeners working at a home on the 200 block of Via El Encantador on April 16, according to the Santa Barbara County Sheriff’s Office

Along with the camera, other items were found with the device in April. Police said they are still investigating the finding. 

‘The device consists of a battery pack, power cord and a camera with a memory card. These items were processed for evidence and booked for retention,’ Raquel Zick, public information officer for the Sheriff’s Office told KTLA5. 

‘The Santa Barbara County Sheriff’s Office would like the public to be aware of this incident and encourage anyone who finds a similar device to immediately report it to law enforcement,’ Zick said.

An image of the devices showed a black hand-held camera with a memory card, a large back battery pack and a power cord wrapped in camouflage tape.  

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A similar hidden camera was found in a bush outside a home on S. Primrose Avenue last Monday night, following an attempted burglary on the residence. 

A social media post showed a photo of the device – a camera concealed in a green shell surrounded by leaves.

A similar hidden camera was found in a bush outside a home on S. Primrose Avenue last Monday night, following an attempted burglary on the residence

A similar hidden camera was found in a bush outside a home on S. Primrose Avenue last Monday night, following an attempted burglary on the residence

A social media showed a photo of the device - a camera concealed in a green shell surrounded by leaves (pictured)

A social media showed a photo of the device – a camera concealed in a green shell surrounded by leaves (pictured)

‘Last night, your APD responded to a call on the 1900 block of S. Primrose Ave. regarding a report of an attempted burglary,’ the Alhambra Police Department wrote in a statement last Wednesday that announced no arrests.  

‘The victim’s neighbor found a hidden camera in the bushes pointing toward their home. 

‘Their alarm company also notified them of an attempt to open the kitchen window earlier that day.

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‘Unfortunately, camouflage cameras are a tactic being used in residential burglaries,’ it continued, sharing an evidence photo of the camera in question.    

‘These cameras are strategically placed in discrete areas, such as bushes, to allow thieves to gather information about homeowners’ daily routines to burglarize their homes.’

An alarm company notified the homeowners of an attempt to open the kitchen window earlier that day, a month after four Colombian nationals were cuffed for allegedly running a ‘burglary tourism’ ring that involved the use of camouflage cameras. 

That happened in Glendale a few miles away, as burglary tourism seen since the pandemic continues to dominate headlines not only in The Golden State, but elsewhere as well.

In the Glendale case, the four arrested – 28-year-old Bryan Martinez Vargas, Jose Antonio Velasquez, 28, Edison Arley Pinzon Fandino, 27, and Luis Carlos Moreno, 29 – were all Colombian, and all proponents of the new trend, cops claim. 

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In this particular incident, the cameras were found before the thieves could gain entry.

The camera was found in the bushes and camouflaged with greenery to prevent it from being seen, but who put it there and how long it was stationed remains unknown.

The camera in that case was also found by an eagle-eyed neighbor, the homeowner told KTLA May 28.

‘Burglary tourism’ involves foreign nationals entering the United States using tourist visas to commit burglaries, Glendale PD Sgt. Vahe Abramyan reiterated last month.

‘They’ll commit these crimes, they’ll use different identities, things like that and eventually they’ll go back to their home country.

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‘Some of these residential burglars have been recorded going through second-story homes,’ added Officer Jessica Cuchilla with the police force in Huntington Beach. 

“In these instances, the reason why they’re going in through there is because people don’t install alarm systems on their second story.

The thieves typically then ship the items they steal back to their home countries or sell the items before leaving, both cops said.

Cops have urged residents to survey their yards as the act of 'burglary tourism' has taken over crime-ravage Southern California. (pictured: Another hidden camera found uncovered outside a home in LA )

Cops have urged residents to survey their yards as the act of ‘burglary tourism’ has taken over crime-ravage Southern California. (pictured: Another hidden camera found uncovered outside a home in LA )

If you spot a suspicious vehicle, write down the license plate, officers also advised – adding to also keep your front porch and exteriors well-lit.

Trees and bushes should also be well-trimmed, they said – as to not become an easy hiding spot for thieves.

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The installation of security cameras is also important, the cop said – as is monitoring them frequently.

And lastly, a broken window or open door should be a telltale sign to call police immediately, and to not even come close to entering.

‘Remember, it’s important to regularly inspect the exterior of your home for any unfamiliar objects or changes in the landscaping that could potentially hide a surveillance camera,’ cops said in their statement. 

‘Keep an eye out for suspicious people knocking on doors. They may be checking whether someone is home.’



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