Connect with us

California

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

Published

on

California banks to combine in 4 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.

Advertisement

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.

Advertisement

“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.”

Advertisement

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.

Advertisement

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.



Source link

Advertisement

California

Forest Service workers held hostage at gunpoint by father, son in CA forest for hours: Authorities

Published

on

Forest Service workers held hostage at gunpoint by father, son in CA forest for hours: Authorities


SISKIYOU COUNTY, Calif. — Law enforcement in far Northern California’s Siskiyou County announced the arrests of a father and his adult son in the alleged kidnapping of two U.S. Forest Service workers, who are now safe and free.

The sheriff says they got a call around 10:55 a.m. Thursday from the Forest Service that a man had taken two Forest Service employees hostage in a very remote area.

The 49-year-old suspect had zip-tied the two Forest Service workers, holding them at gunpoint for nearly 15 hours in a trailer near Gumboot Lake in the Shasta-Trinity National Forest, officials said.

The suspect indicated he wanted to speak with the FBI, but it remains unclear why. Officials are still investigating motives for the kidnapping.

Advertisement

A huge contingent of law enforcement moved into the area. The FBI’s Hostage Rescue Team arrived on a Boeing 757 from Quantico as snipers, SWAT teams, bomb units, and drones were deployed.

Dashcam footage shows armed officers in tactical gear hitching a ride from a passing pickup truck.

Eventually, after many hours of negotiating, the two Forest Service workers were released just before 2 a.m. and are now safe at home.

The suspect and his adult son came out and were arrested at around 2:30 a.m.

The father will be charged with kidnapping a federal employee. In the trailer, he had an AR-15, knives, and claimed to have grenades.

Advertisement

It’s unclear if the trailer was his, but it did not belong to the Forest Service.

ABC7 Eyewitness News contributed to this story.

Copyright © 2026 ABC News Internet Ventures.



Source link

Advertisement
Continue Reading

California

The San Andreas fault has gone ominously silent. Scientists fear when it finally snaps

Published

on

The San Andreas fault has gone ominously silent. Scientists fear when it finally snaps


It lurks ominously beneath California’s many natural wonders, a reminder that nothing in this landscape is truly permanent.

It’s been described as “the mother of all earthquake faults,” the source of both our geological birth and, perhaps, our ultimate undoing.

But the most unnerving thing about the San Andreas fault these days may be its silence. It’s a mystery scientists are still trying to unlock.

The San Andreas is central to any discussion of California. It’s the massive 800-mile spine of the state, trundling up the Coachella Valley to the San Gabriel Mountains, and pushing along the edge of Silicon Valley to beyond the Golden Gate.

Advertisement

There is no simple answer for why California’s longest fault, responsible for some of America’s most powerful earthquakes, has produced so few in the last century.

But it is clear that the quiet period is only increasing strain on the San Andreas, as well as on the state’s second-longest fault, the San Jacinto.

A new study underscores the concern. Researchers estimated that key sections of the fault in Southern California are at their highest level of tectonic strain in the last 1,000 years.

The San Andreas, in other words, is locked, loaded and inevitable.

Ticking tectonics

There are generations of Californians who have never experienced the fury of the San Andreas.

The fault was responsible for a megaquake that ripped through the then-sparsely populated state in 1857 — an event that, if repeated today, would reap mass destruction.

In 1906, “a crack in the edge of the world,” as author Simon Winchester described it, flattened San Francisco.

Advertisement

Modern Californians have been forced to make do with Hollywood’s CGI versions of the fault, which cast it as one of our state’s darkest villains.

But sooner or later, scientists say, California’s earthquake faults will rupture in a way not seen in the modern era. While California has seen sizable temblors since the great San Francisco quake of 1906, the state’s faults are capable of producing intense shaking over a much larger area than seen during more modern events such as the Sylmar, Loma Prieta or Northridge quakes.

“We keep accumulating that earthquake energy, and it has to be released. And the only way it gets released is through large earthquakes,” said U.S. Geological Survey geologist Kate Scharer, one of the new study’s co-authors. “The small ones don’t really do it.”

The California Aqueduct is seen over the San Andreas fault.

A section of the California Aqueduct crisscrosses the San Andreas fault dozens of times.

Advertisement
  • Share via

Advertisement

The latest study, published last month in the Journal of Geophysical Research: Solid Earth, set out to create a model that calculated the seismic strain on three key segments of the San Andreas and San Jacinto faults where they intersect at the Cajon Pass in San Bernardino County.

The model is based on a number of factors: the estimated timing of earthquakes on the faults over a record of the last 1,000 years; satellite observations of how fast tectonic plates are moving; and estimates of how rigid Earth’s crust is, which determines how much stress can be accommodated and then released, Scharer said.

The computer model “found that tectonic stress has now reached higher levels than at any point in that entire record. From the model, we see that the conditions that historically preceded large joint ruptures crossing both fault systems are now approaching,” said Liliane Burkhard, the lead author of the study and a scientist at the University of Bern in Switzerland and the Hawaii Institute of Geophysics and Planetology at the University of Hawaii.

Advertisement

The last major temblor to strike urban Southern California, the magnitude 6.7 Northridge earthquake of 1994, resulted in severe damage and the deaths of about 60 people. But it was also mostly limited to a relatively small area of Los Angeles County.

By comparison, a hypothetical magnitude 7.8 earthquake on the southern San Andreas would simultaneously bring violent shaking to L.A., Orange, Riverside, San Bernardino, Ventura and Imperial counties and could result in 1,800 deaths, according to a U.S. Geological Survey estimate published in 2008.

The findings of the latest study don’t change the overall expectation of a big earthquake hitting Southern California. But they underscore the persistent risk — as well as the possible scale of the disaster.

There’s a 60% chance of a magnitude 6.7 or greater earthquake striking the Los Angeles region by 2045, according to USGS estimates published in 2015. There’s about a 1 in 5 chance of such a quake striking on the San Andreas fault within L.A. County and the Inland Empire.

Why the drought?

The decades-long relative earthquake drought “is an unusually long interseismic period, and stress has been accumulating continuously throughout,” Burkhard said.

Advertisement

The authors created a 28-second animation, showing how tectonic strain increased along the faults over the last 1,000 years. Big earthquakes then release that strain, before the cycle starts again.

This animation condenses 1,000 years of the Cajon Pass’s earthquake history into 28 seconds. Tectonic stress, shown in shades of orange and red, builds up along three fault segments. Following an earthquake, that stress is released. (Liliane Burkhard / University of Bern / University of Hawai’i at Manoa)

Advertisement

The study calculated that the San Andreas fault just northwest of the Cajon Pass and the San Jacinto fault just southeast of the pass are at their highest tectonic strain since the year 1100.

The pass, located roughly 50 miles northeast of downtown Los Angeles, marks the dividing line between the San Gabriel Mountains to the west and the San Bernardino Mountains to the east.

Specifically, the study’s authors calculated that the current tectonic stress was 2.8 megapascals on the San Andreas northwest of the pass, surpassing the previous highs of 2.7 just before big quakes in 1469 and 1691.

For the San Jacinto, the authors calculated a current seismic stress of 3.6 megapascals, surpassing the previous high of 2.9 before an earthquake in the year 1249.

The study noted that it has been an unusually long time since a megaquakes has hit Southern California. The San Andreas fault northwest of the Cajon Pass usually has big quakes every 100 to 150 years, Scharer said, though intervals of about 200 years are not unheard of.

Advertisement

On the San Andreas southeast of the pass, big quakes usually happen every 200 to 250 years. But the most recent quake on the San Andreas along the Salton Sea, close to the Mexican border, was about 300 years ago.

There are some limitations to the study’s model, scientists acknowledge. For instance, the model presumes that when large earthquakes hit, all the tectonic stress that had been accumulated in the fault gets released, “so you start at a ground state of zero and then you accumulate back up until you have that next big event,” Scharer said.

But whether all that stress actually gets released during a big quake is not definitively known.

The Mormon Rocks in Phelan.

The Mormon Rocks in Phelan, Calif.

Tectonic risks

Whenever it strikes, a supersized earthquake on the southern San Andreas would be like no earthquake seen in living memory in California.

Advertisement

The 1857 quake, estimated to be a magnitude 7.9, produced 63 times more shaking energy than the 1994 Northridge earthquake, and across a much larger swath of the state.

In 1994, “violent shaking,” or Level 9 on the Modified Mercalli Intensity Scale, causing great damage in substantial buildings, affected only part of the San Fernando Valley.

But a magnitude 7.8 San Andreas quake hypothesized by the USGS in its 2008 ShakeOut scenario would cause that kind of shaking across Southern California.

In 1994, emergency responders from across Southern California were able to focus the bulk of their efforts on especially hard-hit areas. That wouldn’t be possible in a regionwide disaster.

It might be tempting for Californians to tune out talk of the “Big One” after hearing about it for most of their lives. But generational catastrophes do strike — be they an earthquake in San Francisco in 1906, a hurricane in New Orleans in 2005 or tsunamis in the Indian Ocean in 2004 or Japan in 2011.

Tectonic rewards

Earthquakes are part of the bargain of living in California, a product of the same forces that allow people to ski and surf on the same day. The same tectonics that drive earthquakes act as the state’s landscape artists, said Julian Lozos, associate professor of geological sciences at Cal State Northridge.

“Because we are on the edge of the continent, we’re on a plate boundary, and have been a plate boundary for a couple hundred million years. There’s constantly been stuff crashing into North America, and getting stuck to it, and getting uplifted, and erupted through, and slid around,” Lozos said.

Advertisement

The Sierra Nevada, California’s mightiest mountain range, “are the guts of the volcanoes that used to be there when there was a subduction zone … and then when those volcanoes stopped erupting, the guts of them lifted up through the crust,” Lozos said.

A road passes next to land over the San Andreas fault.

Big Pines Highway rises out of a valley to ride a ridge created by the tectonic forces of the San Andreas fault, two miles southeast of the unincorporated Mojave Desert community of Valyermo, home to about 450 residents.

The same forces that produce earthquakes are also what led gold to form in the Sierra foothills, inciting the state’s famous rush.

Tectonic movement also created today’s Central Valley, a highly productive agricultural area that was once part of the ocean, then an inland sea, and then a freshwater lake, Lozos said.

“Everything about what we see here is stuff that formed because of that plate boundary then, and it’s getting moved around by the plate boundary now,” Lozos said. “And so if we didn’t have anything like that, we would be Nebraska.”

Advertisement

But the risks, like the rewards, are significant. The San Andreas runs right through cities in the Inland Empire. The Los Angeles Basin is also at risk.

If an earthquake on the San Andreas comes from the south and heads north, it would shuttle all that shaking energy “right into downtown,” Lozos said, causing shaking that could last two to three minutes.

“Geologically, L.A. is a bowl of Jell-O. It is a hard rock bowl full of really soft, squishy stuff that shakes very easily,” Lozos said.

A woman talks to a customer at the Wrightwood Inn.

It is business as usual at the Wrightwood Inn on a recent Tuesday night. According to a recent study, seismic pressure has been gradually building in the area for more than a century.

It’s not certain why it’s been so quiet between earthquakes, said Scharer. Another study, published in 2023, suggested the lack of sudden, major floodwaters funneling into Lake Cahuilla, the larger historical predecessor to the Salton Sea, may have something to do with it.

Advertisement

Scharer said the study’s results are a good reminder to prepare for the next big earthquake.

To be sure, the computer model’s results are not a prediction, and all models have their limitations and uncertainties. Still, its suggestion that the fault systems are “more loaded than at any point in the 1,000-year record,” Burkhard said, “is a finding worth taking seriously.”

“In the end, the most important message is a simple one: Let’s make sure we are prepared,” she said.



Source link

Advertisement
Continue Reading

California

Becerra leads Hilton by wide margin in California governor’s race, new poll finds

Published

on

Becerra leads Hilton by wide margin in California governor’s race, new poll finds


A new poll in the race for California Governor shows Democrat Xavier Becerra is leading Republican Steve Hilton by a wide margin — 61% to 36%.

Becerra leads Hilton across several demographics: age, gender, homeownership, income, racial/ethnic groups and across the state’s major regions.

The poll also found 85% of likely voters say that the gubernatorial candidates’ positions on the environment are important — 60% of Democrats call it “very important,” compared to 29% of Republicans.

The poll surveyed 1,578 California adults from June 29 through July 6 and was conducted by the Public Policy Institute of California. The poll was conducted in English and Spanish, and 1,003 of those who were polled were likely voters.

Advertisement

The same poll found that a large majority of Californians do not want new data centers built in their area. Only about a quarter of those surveyed are in favor of the construction of data centers.

The PPIC survey focused on Californians and the environment.

Another key finding was that Californians are most likely to name wildfires as the top environmental issue facing the state today, followed by climate change, government overregulation and water supply. Of those polled, about six in 10 think that the state and local governments are not doing enough to address wildfires.

The California General Election will be held on Nov. 3, 2026.

Copyright © 2026 KABC Television, LLC. All rights reserved.

Advertisement



Source link

Continue Reading
Advertisement

Trending