California
California banks to combine in $234 million 'merger of equals'
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
The $2.4 billion-asset
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.
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
The transactions come on the
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.
“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.”
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.
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.
A damaged building is seen after an explosion in Palm Springs, Calif., on Saturday.
Eric Thayer/AP
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Eric Thayer/AP
A fatal explosion outside a California fertility clinic Saturday morning is being investigated as an act of terrorism, according to an FBI official.
One person was killed and four were injured in the weekend blast that sent debris flying across multiple blocks in all directions, said Akil Davis, assistant director in charge of the FBI’s Los Angeles Field Office.
“Make no mistake, this is an intentional act of terrorism,” he said during a Saturday news conference.
Investigators were “not actively out searching for a suspect” but had identified a person of interest, Davis added. He did not say if that person was the one killed in the explosion.
Palm Springs Police Chief Andrew Mills said the public was not in any more danger. “I also want to make sure that our community understands this is an isolated incident. I am confident that the community is not at risk any longer,” he said.
American Reproductive Centers said Saturday in a post on Facebook that a vehicle had exploded in the parking lot near its Palm Springs facility earlier in the day. The clinic said no staff members were hurt and there was no damage to any of its eggs, embryos and reproductive material.
“This moment has shaken us—but it has not stopped us,” the post reads. “We will continue to serve with strength, love, and the hope that brings new life into the world.”
A firefighter stands at the scene of an explosion in Palm Springs, Calif., on Saturday.
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Eric Thayer/AP
Davis said the FBI believes the fertility clinic was targeted.
Attorney General Pam Bondi said Saturday evening that she had been briefed on the explosion. “We are working to learn more, but let me be clear: the Trump administration understands that women and mothers are the heartbeat of America,” she said in a post on X. “Violence against a fertility clinic is unforgivable.”
Bomb technicians were scouring the blast scene Saturday as part of the ongoing investigation, which was being led by the Joint Terrorism Task Force.
First responders arrived at the scene around 11 a.m. local time Saturday morning to find a debris field stretching over 250 yards, Davis said. He added that investigators were looking into the possibility that the bombing was live streamed.
Tiffany Slaton, a 28-year-old woman originally from Georgia, was found alive after surviving three weeks lost in the wilderness.
Slaton planned to spend three days in California’s Sierra Nevada mountains, but after she fell off a cliff and an avalanche disrupted her path back to the main road, she spent three weeks lost in the mountains instead.
She embarked on her solo trip April 20 and was reported missing by her family April 29 after they hadn’t heard from her for nine days. After three weeks with dwindling food and supplies, Slaton was eventually found safe May 14, according to the Fresno County Sheriff’s Office.
The sheriff’s office began a search after Slaton was reported missing, and alerted the public to keep an eye out for any sign of her. Several tips from the community were called in, with confirmed sightings of Slaton on April 20 and April 24.
During a May 16 press conference, Slaton detailed her harrowing experience, sharing, “When I fell off of this cliff, I was unconscious for about two hours and did indeed have to splint one of my legs and pop the other knee back into place.”
Slaton initially had food and supplies, but when her rations ran out, she relied on her own skills to survive, revealing during the press conference that she was “pretty good at foraging.”
She primarily ate leeks and drank snow melt, referring to herself as “a trained permaculturalist.” Slaton said, “That means I’m very good at foraging, but at the end after fighting nature for such a long time, I lost my tent, and I did eventually lose both sleeping bags, so I was outside with nothing but a lighter and a knife.”
Between May 6 and May 10, the search and rescue team conducted a search spanning almost 600 square miles, according to authorities. After going off course, Slaton walked for miles for several days before she came across a remote mountain resort, Vermilion Valley Resort, on May 13.
Slaton called the resort as her saving grace, sharing that without Vermilion Valley Resort, she “would not be here.”
The resort’s owner Christopher Gutierrez told reporters during a May 14 press conference that he purposefully leaves cabins open for emergencies should someone need to seek shelter from the elements. After Slaton arrived at the resort, she was there for approximately eight hours before Gutierrez found her and immediately contacted the sheriff’s office.
During the media conference, which included Slaton’s parents, Bobby and Fredrina Slaton, Gutierrez recalled the moment he saw the 28-year-old, explaining, “She pops out, didn’t say a word, just ran up, and all she wanted was a hug.”
“It was a pretty surreal moment,” he added. “And that’s when I knew. That’s when I realized who this was.”
Other than experiencing dehydration, Slaton was in “good condition” when medics arrived at the scene, the Sheriff’s Office noted. Slaton was subsequently transported to a hospital for further evaluation.
Due to exposure to bright light from the snow-covered terrain in the mountains, authorities said Slaton’s eyes were damaged to the point where she had to wear sunglasses for two days after her rescue.
During the press conference Wednesday, Slaton’s parents expressed their joy over their daughter being found. Bobbly Slaton recalled the first thing his daughter said to him after she had been rescued: “‘Dad, I’m alive, and I’m sorry.’”
“This has to be the third or fourth best day of our lives after our children’s birth,” Bobby Slaton said. “We are extremely excited and happy to hear the news that my daughter is now safe.”
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