Bay Commercial Bank (BCML) in Walnut Creek, Calif., has agreed to buy Community Bank of San Joaquin in Stockton, Calif.
Bay Commercial will pay roughly $4.8 million for the $119 million-asset Community Bank, according to the companies’ joint Thursday press release. The deal is expected to close in the second quarter.
The merger between Bay Commercial, Community Bank and its parent, Bank On It (BKOT), will form a company with seven branches and combined assets of $445 million. Bay Commercial currently has five branches and $327 million in assets.
Bay Commercial will pay Bank On It shareholders their consideration in cash, according to the release.
The deal is “a key step in our strategy to augment our growth through organic and external means,” Bay Commercial president and chief executive George Guarini said in the release. “We provide a mix of commercial, industrial and real estate loans and loans guaranteed by the Small Business Administration, Farm Service Agency, as well as our tax-free exchange and escrow services. We will now add agricultural lending and trust products to our mix of services.”
Bay Commercial Bank is represented by Gary Steven Findley & Associates in the deal. Bank On It is represented by investment banking firm FIG Partners. Bingham McCutchen acted as its legal advisor.