VISALIA, Calif., Dec. 14, 2015 /PRNewswire/ -- Suncrest Bank (OTCQX: SBKK) today announced that the merger of Sutter Community Bank (OTC Pink: SUTB) with and into Suncrest Bank was completed on December 11, 2015.
The acquisition, which was first announced on June 25, 2015, was concluded following receipt of shareholder approval for the transaction from the shareholders of Sutter Community Bank and all required regulatory approvals. As of September 30, 2015, Sutter Community Bank had $68.3 million in assets and Suncrest Bank had $218.0 million in assets. As of September 30, 2015, on a pro forma combined basis with Sutter Community Bank, Suncrest Bank had approximately $286.3 million in assets.
Ciaran McMullan, President and CEO of Suncrest Bank, commented, "The transaction creates a stronger community and agricultural bank with an expanded presence in the Central Valley of California. Our newly combined company has the ability to offer loans up to $10 million to qualified borrowers throughout the North and South Valley, and we are excited about the growth potential this geographic expansion gives us."
Daniel C. Jacuzzi, former Chairman of Sutter Community Bank who joined Suncrest Bank as a director, noted, "The combination is a very positive event for the shareholders, customers and employees of both institutions. Our team is excited about the business opportunities and client services which will result from the merger of Sutter Community Bank and Suncrest Bank. We have a combined management group dedicated to providing our target market with a high level of personal service and products."
In the transaction,. Suncrest Bank is issuing an aggregate of approximately 1,144,414 shares of Suncrest Bank common stock to Sutter Community Bank shareholders. Based on the closing price of Suncrest Bank's common stock on December 11, 2015 of $7.35 per share (and without giving effect to any Dissenting Shares), the aggregate consideration payable to Sutter Community Bank common shareholders is approximately $8.4 million.
Former holders of Sutter Community Bank common stock as a group received shares of Suncrest Bank common stock in the transaction constituting approximately 22.9% of the outstanding shares of Suncrest Bank common stock immediately after the close of the transaction.
Two former members of the Sutter Community Bank Board of Directors, Daniel C. Jacuzzi and Matthew Pomeroy will join the Suncrest Bank Board of Directors. In addition, all the former Directors of Sutter Community Bank have formed a Local Market Advisory Board and will continue to be actively involved with the new bank.
About Suncrest Bank
Suncrest Bank, member FDIC, is locally owned and operated and offers a full range of business, agribusiness and personal deposit products and loans in the California's Central Valley. It has branches in Visalia, Porterville, Kingsburg and Yuba City. It is regularly rated Five Stars by Bauer Financial and is dedicated to providing a high level of personal service, and to supporting the communities which it serves. It is also a Preferred Lender with the Small Business Administration. Suncrest Bank stock trades on the OTCQX under the ticker symbol SBKK. For further information, visit www.suncrestbank.com
This press release contains certain forward-looking information about Suncrest Bank (the "Bank) that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Bank. Forward-looking statements speak only as of the date they are made and we assume no duty to update such statements. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: lower than expected revenues; credit quality deterioration or a reduction in real estate values could cause an increase in the allowance for credit losses and a reduction in net earnings; increased competitive pressure among depository institutions; the Bank's ability to complete future acquisitions, successfully integrate acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all; the possibility that personnel changes will not proceed as planned; the cost of additional capital is more than expected; a change in the interest rate environment reduces net interest margins; asset/liability repricing risks and liquidity risks; legal matters could be filed against the Bank and could take longer or cost more than expected to resolve or may be resolved adversely to the Bank; general economic conditions, either nationally or in the market areas in which the Bank does or anticipates doing business, are less favorable than expected; environmental conditions, including natural disasters and drought, may disrupt our business, impede our operations, negatively impact the values of collateral securing the Bank's loans and leases or impair the ability of our borrowers to support their debt obligations; the economic and regulatory effects of the continuing war on terrorism and other events of war; legislative or regulatory requirements or changes adversely affecting the Bank's business; changes in the securities markets; or regulatory approvals for any capital activities cannot be obtained on the terms expected or on the anticipated schedule. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, Suncrest Bank's results could differ materially from those expressed in, implied or projected by such forward-looking statements. Suncrest Bank assumes no obligation to update such forward-looking statements.
SOURCE Suncrest Bank