- Southern California Bancorp and California BanCorp, the holding companies for Bank of Southern California and California Bank of Commerce, are initiating a “true merger of equals” to enhance services for mid-market businesses in the state.
- The $233.6 million all-stock merger is expected to close in Q3 2024, contingent on customary closing conditions and shareholder approval from both parties.
- Southern California Bancorp shareholders will own approximately 57.1% of the combined entity, and California BanCorp shareholders will hold the remaining 42.9%.
- The combined entity, headquartered in San Diego, will have a regional footprint spanning various counties in the south and north of California.
- The merger aims to increase the size and scale of service offerings and lending capacity, focusing on the two most attractive markets in California for profitability.
- David Rainer, current chairman and CEO of Southern California Bancorp, will become the executive chairman of the combined company, while Steven Shelton, CEO of California BanCorp, will serve as CEO and director.
- The merger is seen as bringing together two compatible institutions with similar cultures, a relationship-based approach, and expertise in commercial banking. It is expected to provide growth opportunities in various lending verticals.
