Southern California Bancorp To Combine With California BanCorp In An All-stock Merger

(RTTNews) - Tuesday, Southern California Bancorp (BCAL) and California BanCorp (CALB) announced the signing of a definitive merger agreement. The all-stock transaction is valued at around $233.6 million, or $26.54 per share of California BanCorp, based on Southern California Bancorp's closing price on January 29, 2024.

Each outstanding share of California BanCorp common stock will be exchanged for 1.590 shares of Southern California Bancorp.

Following the merger, Southern California Bancorp shareholders will hold about 57.1% of the combined company's outstanding shares, while California BanCorp shareholders will own roughly 42.9%.

This merger is set to create a California financial institution with approximately $4.6 billion in assets.

David Rainer, Chairman of Southern California Bancorp, will assume the role of Executive Chairman of the combined company, bank, and boards. Meanwhile, Steven Shelton, Chief Executive Officer of California BanCorp, will serve as Chief Executive Officer and director of the combined company and bank.

The transaction is anticipated to close in the third quarter of 2024.