In Brief: Calif.'s Humboldt to Buy Realty Lender

Humboldt Bancorp, Eureka, Calif., said this week that it has a deal to acquire Capitol Thrift and Loan Association in Napa, Calif., for an undisclosed sum in stock and cash.

The $325 million-asset company said it plans a $9 million stock offering in the fourth quarter. Part of its proceeds would be used to close the Capitol Thrift deal.

Shares of Humboldt, parent of Humboldt Bank and Capitol Valley Bank, are traded over the counter, but the company plans to list on the Nasdaq National Market.

Capitol Thrift, the $125 million-asset parent of Global Bancorp, primarily makes small commercial real estate loans.

Theodore S. Mason, president and chief executive officer of Humboldt, said its deposits are growing faster than its loans.

"We had to find ways to supplement our local loan portfolio," he said.

In May, Humboldt tried to buy in-town competitor Six Rivers National Bank but was rebuffed. With the deal for Capitol Thrift and Loan, Humboldt would have 20 branches in Northern California.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER