One PacificCoast Bancorp (OPCB) in Oakland, Calif., has agreed to buy a controlling stake in Albina Community Bancorp (ACBC) in Portland, Ore.
The $128 million-asset Albina Community will sell a 90% stake in itself to One PacificCoast, Cheryl Cebula, Albina's president and chief executive, said in an interview.
Albina has been operating under a consent order with regulators since 2010 that requires it to hold Tier 1 capital of 10% and risk-based capital of 12%. At Sept. 30, those ratios were 4.35% and 8.04%, respectively. Cebula did not say how much capital the bank, which will report its fourth-quarter results later this week, needs to maintain those levels.
The $291 million-asset One PacificCoast Bank has branches in Washington, California and Oregon. Albina and One Pacific Coast Bank are two of roughly 60 commercial banks certified by the Treasury Department as Community Development Financial Institutions, giving them access to grants for affordable-housing loans and to promote the economic development of low-income areas.
"This investment will allow us to serve the markets we have served all along, and to continue to be a strong partner in our community," Cebula told American Banker. "We will continue to do the work we've been doing all along, and that is a positive not only for Albina but for the community."
Albina will continue to operate under its own name, and there will be no layoffs or branch closings, Cebula said. One PacificCoast will add two members to Albina's board as part of the deal.
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