Oak Valley Bancorp in Oakdale, Calif., has agreed to buy Mother Lode Bank in Sonora, Calif.
The $764 million-asset Oak Valley said in a press release Thursday that it will pay $7.3 million in cash and stock for the $71 million-asset Mother Lode. The deal is expected to close in the fourth quarter.
Oak Valley said it expects the transaction will be accretive to its earnings per share starting next year.
"This is an attractive opportunity for Oak Valley to deploy capital and supplement our organic growth strategy," Chris Courtney, Oak Valley's president and chief executive, said in the release. "We anticipate there will be meaningful synergies from the acquisition and we expect to recapture Mother Lode's deferred-tax assets."
D.A. Davidson and Squire Patton Boggs advised Oak Valley. MJ Capital Partners and Dodd Mason George advised Mother Lode.
