VISALIA, Calif., Dec. 19, 2016 /PRNewswire/ -- Suncrest Bank (OTCQX: SBKK) today announced that it has completed its acquisition of Security First Bank in Fresno, CA. The acquisition, which was first announced on September 1st, 2016, was concluded following receipt of shareholder approval for the transaction from the shareholders of Security First Bank and all required regulatory approvals. As of September 30, 2016, Suncrest Bank had $353 million in total assets and Security First Bank had $104 million in total assets.
In addition, Suncrest Bank also announced today that it has completed a private placement of $7.0 million of the bank's common stock. As a part of the offering, the Company issued 678,788 shares, at a purchase price of $8.25 per share, to Castle Creek Capital Partners VI, L.P. for a total investment of $5.6 million, and 169,698 shares, at a purchase price of $8.25 per share, to two of the bank's Directors for a total investment of $1.4 million.
"We are delighted to have completed our second acquisition in a year, and are excited about the opportunity to grow our business in the Fresno market," said Ciaran McMullan, President and CEO of Suncrest Bank. "We set ourselves the ambitious goal of growing to $500 million in total assets within five years, and with the completion of this deal we have effectively achieved that target, two years ahead of schedule," added McMullan.
"I am excited to be joining a management team with a demonstrated ability to execute on its plans, and a genuine passion for local community banking," said Steve Jones, formerly the President and CEO of Security First Bank and now Chief Operating Officer of Suncrest Bank. "I am looking forward to leading the further development of Suncrest's operations and technology infrastructure, its risk management and compliance capability, and its new product development function," he added.
Jennette Williams, Suncrest Bank's Fresno Market President, who will be taking over the leadership of the former Security First Bank business in Fresno added, "It is an honor to lead such a dedicated and enthusiastic team, and to help them build on the success they have achieved here in Fresno over the last ten years."
Mr Eric Wilkins, formerly Vice Chairman of Security First Bank will join the Suncrest Bank Board of Directors. In addition, a number of the former Directors of Security First Bank have formed a Local Market and Agricultural Advisory Board, and will continue to be actively involved with the new bank in Fresno.
MJC Partners, LLC(1) served as the sole placement agent for the offering by Suncrest Bank.
About Suncrest Bank
Suncrest Bank, member FDIC, is locally owned and operated and offers a full range of commercial, small business and agribusiness loans, cash management services and personal deposit products throughout the Central Valley of California. It is regularly rated Five Stars by Bauer Financial as one of the nation's strongest financial institutions, and in 2015 for the second straight year, was named in the top 200 Healthiest Banks in America by analysis firm, DepositAccounts.com. It is a Preferred Lender with the Small Business Administration and its stock can be purchased on the open market, trading on the OTCQX under the ticker symbol SBKK. For all other information, visit www.suncrestbank.com
About the Placement Agent
MJC Partners, LLC is a Los Angeles-based boutique investment banking, wealth management, and advisory firm. Whether companies need assistance executing on their M&A strategy, meeting their capital needs, or resolving other strategic issues, MJCP has the expertise and ability to execute for our clients efficiently and effectively by working alongside executive teams and Boards of Directors. (1) All securities offered through MJ Capital Partners, a wholly owned subsidiary of MJC Partners, LLC.
Forward Looking Statements
Except for the historical information in this news release, the matters described herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, our ability to maintain adequate levels of capital and liquidity, our ability to manage loan delinquency rates, our ability to price deposits to retain existing customers and achieve low-cost deposit growth, manage expenses and lower the efficiency ratio, expand or maintain the net interest margin, mitigate interest rate risk for changes in the interest rate environment, competitive pressures in the banking industry, access to available sources of credit to manage liquidity, the local and national economic environment, and other risks and uncertainties. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this release. Suncrest Bank undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Investors are encouraged to read the Suncrest Bank annual reports which are available on our website.
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SOURCE Suncrest Bank