American Riviera Bank in Santa Barbara, Calif., has agreed to buy Bank of Santa Barbara.
The $230 million-asset American Riviera will acquire the $181 million-asset Bank of Santa Barbara for $15.4 million in stock, based on American Riviera's closing price of $9.70 on July 14. Bank of Santa Barbara shareholders will receive 0.8546 shares of American Riviera for each of their shares.
The deal, which both banks' boards have approved, is expected to close in the fourth quarter.
American Riviera expects the deal to be accretive to earnings starting next year.
Jeff DeVine, American Riviera's chief executive, will remain CEO after the deal closes and Lawrence Koppelman will remain chairman. Joanne Funari, Bank of Santa Barbara's chief operating officer, will retain that role.
The Federal Deposit Insurance Corp. on Feb. 9 terminated a February 2014 consent order against Bank of Santa Barbara that had required the institution to improve its compliance with the Bank Secrecy Act and anti-money laundering laws.