CBC Bancorp, the holding company for Irvine-based Commercial Bank of California, announced it intends to pay $120 million to buy Oakland-based Bay Community Bancorp (OTC Pink: CBOBA), the holding company for Community Bank of the Bay.
CBC Bancorp will acquire Bay Community Bancorp in an all-cash transaction valued at $14 per common share, which is about an 80% premium to today’s closing price of $7.80 and a $68 million market cap.
This acquisition will result in a bank with approximately $3.5 billion in combined assets.
“The alignment of our two institutions will create a unique banking franchise that better serves our employees and clients,” said Ash Patel, chairman of the board and chief executive of Commercial Bank of California. “Once we combine our two reputable banking platforms, it will create a transformative business bank with expanded product offerings driven by the purpose to serve our communities across California.”
For more information, see the May 27 print edition of the Orange County Business Journal.
