Coronado First Bank and La Jolla-based Private Bancorp of America and its wholly owned subsidiary San Diego Private Bank announced Tuesday that Coronado First Bank and San Diego Private Bank will merge, pending regulatory and shareholder approval, and subject to customary closing conditions.
The agreement provides that at the effective time of the merger, all of the outstanding shares in San Diego Private Bank will be exchanged for shares of Coronado First Bank (OTC: NADO) at a fixed exchange ratio of 0.545 shares of Coronado First Bank for each share of San Diego Private Bank, for an implied deal value of approximately $15.5 million.
Immediately prior to the merger of Coronado First Bank and San Diego Private Bank, the holding company Private Bancorp of America will be merged with and into San Diego Private Bank such that prior Private Bancorp of America shareholders will own all of the outstanding shares of San Diego Private Bank.
The merger is expected to be completed in the first quarter of 2013.
Coronado First Bank had $166 million in assets and $28.4 million in capital as of Sept. 30.
The bank has branches in Coronado and downtown San Diego and services the needs of small businesses and real estate investors throughout southern California.
San Diego Private Bank was formed in August 2006 to focus on providing private banking services, and has since expanded into commercial and SBA lending. It had $129 million in assets and $13.1 million in capital as of Sept. 30.
The new bank will adopt the name of San Diego Private Bank and will be headquartered in Coronado.
It will continue to operate all of the current locations, including Coronado -- where it will retain the Coronado name -- downtown San Diego and La Jolla.
Representatives of both banks will be appointed to the surviving bank's board of directors.
Selwyn Isakow will serve as chairman of the board and Maria Kunac will serve as president and CEO of the surviving bank.
801 Orange Ave. Ste., 101
Coronado, CA 92118