Southern California Bancorp and California Bancorp to Merge

Southern California Bancorp and California Bancorp have announced a merger deal worth $233.6 million. The two companies have entered into a definitive agreement to combine their businesses in an all-stock merger of equals.

Deal Details

Under the terms of the agreement, California Bancorp shareholders will receive 1.59 shares of Southern California Bancorp common stock for each share they own. This will result in Southern California Bancorp shareholders owning approximately 57.1% of the combined company, with California Bancorp shareholders owning the rest.

The merger is expected to create a premier financial institution in the state with approximately $4.6 billion in assets. It will also enable both banks to enhance their scale, invest in technology, and reduce risk.

Headquarters and Rebranding

Following the completion of the transaction in the third quarter of this year, the headquarters of the newly combined company will be located in San Diego. The banks will also consider rebranding with new names and logos.

Leadership

The new board of directors will consist of six members from each company. David Rainer, Chairman and Chief Executive Officer of Southern California Bancorp, will serve as the executive chairman, while Steven Shelton, Chief Executive Officer of California Bancorp, will serve as the CEO.

This merger marks an exciting development in the financial landscape of Southern California, bringing together two strong institutions to create a more robust and innovative entity.