Bank of Marin Bancorp (BMRC) in Novato, Calif., has agreed to acquire NorCal Community Bancorp (NCLC) in Alameda, Calif.
Bank of Marin will pay $32.7 million in cash and stock, or $3.07 a share, for the $265 million-asset NorCal, it said Monday. The price is a roughly 15% premium to NorCal's closing price on Monday.
The companies expect to complete the deal in the fourth quarter. Bank of Marin has $1.4 billion in assets and 18 branches, though it lacks a presence in Alameda and Contra Costa Counties, where NorCal's six branches are located.
"This is an excellent opportunity to combine two well-respected community banks that share a deep commitment to their local communities," Joel Sklar, Bank of Marin Bancorp's chairman, said in a press release. "This acquisition provides Bank of Marin with the right opportunity to expand into the East Bay, which has been a key part of our long-term strategy."
The Federal Reserve Board terminated an enforcement action with NorCal in May.
Keefe, Bruyette & Woods advised Bank of Marin; Sandler O'Neill advised NorCal.