Rancho Santa Margarita-based CalWest Bancorp NA (OTCBB: CALW) announced it’s being sold to San Diego-based Bank of Southern California (OTC Pink: BCAL).
The Bank of Southern California made an all-cash offer a of 43 cents for each of CalWest’s shares that the companies called a $32 million deal. The merger is expected to close in the first quarter of 2020.
CalWest increased 14% to 41.5 cents a share. Volume of 78,000 was about 9 times its daily average. Bank of Southern California, which has a $22 million market cap, fell today about $1.70 to $11.60.
CalWest Bank has three branches located in Orange County and one office in Redlands. CalWest Bank will help Bank of Southern California, which has only one branch in Orange County, expand in the region, the companies said.
Upon completion of the transaction, the combined organization will have pro forma assets of approximately $1.1 billion and combined capital of approximately $120 million.
Bank of Southern California’s executive team will continue in their current roles at the combined bank, including Nathan Rogge as chief executive.
MJC Partners LLC served as financial advisor and Duane Morris LLP served as legal counsel to Bank of Southern California. Janney Montgomery Scott LLC served as financial advisor and Stuart Moore Staub served as legal counsel to CalWest Bancorp.