Bay Commercial Bank (BCML) in Walnut Creek, Calif., has agreed to buy Bank On It Inc. (BKOT) in Stockton, Calif.
The $327 million-asset Bay Commercial will pay roughly $4.8 million in cash for the Bank On It and its $119 million-asset Community Bank of San Joaquin, according to a Thursday press release from the companies. The deal is expected to close in the second quarter.
The merger will form a company with seven branches and $445 million in assets.
The deal is "a key step in our strategy to augment our growth through organic and external means," Bay Commercial President and Chief Executive George Guarini said in the release. "We provide a mix of commercial, industrial and real estate loans and loans guaranteed by the Small Business Administration, Farm Service Agency, as well as our tax-free exchange and escrow services. We will now add agricultural lending and trust products."
Bay Commercial was represented by Gary Steven Findley & Associates. Bank On It was represented by FIG Partners and Bingham McCutchen.