IRVINE, Calif. & SAN DIEGO--(BUSINESS WIRE)--
Opus Bank, a West Coast-based commercial bank, and California Bank & Trust (“CB&T”), a subsidiary of Zions Bancorporation (ZION), announced today that they have entered into a purchase and assumption agreement through which Opus Bank will acquire four branches from CB&T. As part of the transaction, Opus Bank will assume substantially all of the deposits of the four locations, which deposits totaled $138.3 million as of March 31, 2013. The transaction includes banking offices in Covina, La Verne, and San Dimas, located in the San Gabriel Valley in Los Angeles County, California; and Pleasant Hill, located in Contra Costa County, California.
The transaction will result in the transfer of deposits from CB&T to Opus Bank in exchange for a weighted average deposit premium of approximately 3.20% applied to the deposit balances transferred at closing. The deposits to be transferred are low cost core deposits; 86% are comprised of core transaction deposit accounts, of which 40% are comprised of non-interest bearing DDA checking account deposits, and have a total cost of deposits of 0.09% at March 31, 2013. Business deposits account for 36% of the total. Although certain other assets related to the branches, with an approximate value of $250,000, will be included in the transaction, no loans will be transferred. The transaction is expected to be completed before the end of the third quarter of 2013, and is subject to regulatory approval and other customary terms.
Stephen H. Gordon, Chairman, Chief Executive Officer and President of Opus Bank stated, “The acquisition of these banking offices and related deposits provides an opportunity to expand into markets that we have been targeting for future growth. The three Southern California banking offices are complementary to Opus Bank’s existing banking offices in Glendale, as well as in Pasadena and Monrovia, along the 210 freeway corridor in the San Gabriel Valley, along with its banking offices in North Orange County.” Mr. Gordon added, “The Pleasant Hill banking office in Northern California is approximately midway between our Danville banking office located in Contra Costa County, which opened in June of 2012, and our new San Rafael banking office located in Marin County, which is expected to open in the third quarter of this year.” Mr. Gordon concluded, “We look forward to welcoming our new bankers and clients, efficiently building upon these existing client relationships, and further financing growth within our communities. By expanding our footprint, Opus Bank will be better positioned to fulfill our mission of financially backing those businesses, entrepreneurs, real estate investors, professionals, and consumers with a vision to expand and grow, and thereby create new jobs from the ground up.”
David Blackford, Chief Executive Officer and President of CB&T stated, “The sale of these four branches improves the efficiency and profitability of our branch network. The three Southern California locations were acquired from the FDIC in 2009 as part of the Vineyard Bank acquisition and this sale is an important step in the final integration of the acquired branches into the CB&T network.” Mr. Blackford continued, “Even after the sale, CB&T will have a significant presence in the East Bay, with offices in Walnut Creek, Oakland, Albany, Hayward and Fremont as well as in the eastern part of the San Gabriel Valley with offices in Hacienda Heights, Irwindale, Claremont, and Walnut. This transaction also helps move us forward strategically. The cost savings generated from the sale provide an opportunity to expand into new markets as we continue to build the bank and deliver our high touch style of banking throughout California.”
There will be no changes to any CB&T client accounts until after the transaction is completed, and the banks will collaborate to ensure a smooth transition for the businesses and individuals they serve. Over the next several weeks, Opus Bank and CB&T will be communicating directly with the clients and personnel in the to be acquired banking offices to guide them through the process and to create a smooth transition and seamless experience.
Opus Bank was not advised by an investment banker in this transaction and was represented by Patton Boggs LLP as its outside legal counsel. California Bank & Trust was not advised by an investment banker in this transaction.
About Opus Bank
Opus Bank is an FDIC insured California-chartered commercial bank with $3.0 billion of total assets, $2.3 billion of total loans, and $2.1 billion in total deposits, as of March 31, 2013. Opus Bank provides high-value, relationship-based banking products, services, and solutions to its clients comprised of small and mid-sized commercial businesses, entrepreneurs, real estate investors, professionals, and consumers. Opus Bank offers a robust suite of treasury and cash management and depository solutions, and a wide range of loan products, including commercial and industrial, SBA, commercial real estate, multifamily residential, conforming and jumbo single-family residential, and consumer loans; and is an Equal Housing Lender. Opus Bank operates 52 banking offices, including 30 banking offices in California and 22 in the Seattle/Puget Sound region in Washington. For additional information about Opus Bank, please visit our website: www.opusbank.com.
About California Bank & Trust
California Bank & Trust, a subsidiary of Zions Bancorporation (ZION), is one of the largest banks headquartered in California with over $10 billion in assets and more than 100 branches statewide. CB&T provides a full array of financial solutions for businesses and individuals, including commercial and small business lending, cash management, international banking and wealth management. The professional bankers at CB&T are backed by major resources, yet maintain local-decision making authority and regional market and industry expertise. They are committed to providing clients with valuable business and economic insights and to connecting them with the beneficial business relationships they need to succeed. To learn more, visit www.calbanktrust.com. Connect with California Bank & Trust on Facebook, Twitter, and LinkedIn.
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Mr. Stephen H. Gordon
Chairman & CEO
Mr. Jeff L. Leonard
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California Bank & Trust
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