La Jolla-based Private Bancorp of America announced Tuesday a merger of its San Diego Private Bank with Coronado First Bank, pending regulatory and shareholder approval, according to press reports.
The deal is worth $15.5 million, said the San Diego Daily Transcript, based on a fixed exchange ratio of 0.545 shares of Coronado First Bank for each share of San Diego Private Bank.
The merger is expected to be completed in the first quarter of 2013, said Marketwire.
Coronado First Bank President and CEO Maria P. Kunac and Selwyn Isakow, her counterpart at San Diego Private Bank, said in a joint statement Tuesday:
“Both banks operate in complementary markets emphasizing personal client service. Bringing these two banks together to form a larger and stronger organization focused on growth will provide banking clients with broader products and services at a time when the Southern California region is entering its next growth cycle.”
Coronado’s Kunac added: “The merger is a great opportunity for us to provide our clients increased credit capacity and expanded access to tailored banking products and services. This partnership presents an almost seamless merger opportunity because of the two banks’ similar operating styles and systems.”
Said La Jolla’s Isako: “This merger is about two community banks that complement each other in size, products, service commitment, and their geographic focus. Coronado First Bank brings a wealth of experience in all aspects of real estate lending and superior credit administration while San Diego Private Bank brings a culture of unparalleled client service and customized financing solutions as well as a full complement of government guaranteed small business loan products.”
Coronado First Bank had $166 million in assets and $28.4 million in capital as of Sept. 30,” the reports said. “The bank has branches in Coronado and downtown San Diego and services the needs of small businesses and real estate investors throughout southern California.”
San Diego Private Bank, formed in August 2006, had $129 million in assets and $13.1 million in capital as of Sept. 30, 2012, the paper said.
The new bank will retain the name San Diego Private Bank but be headquartered in Coronado—and will continue to operate all of the current locations, including Coronado (where it will retain the Coronado name), downtown San Diego and La Jolla, the Transcript said.
“Representatives of both banks will be appointed to the surviving bank's board of directors. Selwyn Isakow will serve as chairman of the board and Maria Kunac will serve as president and CEO of the surviving bank,” the paper said.