Bank of Marin in California to Buy NorCal Community

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.