Central Valley Community Bancorp in Fresno, Calif., has agreed to buy Folsom Lake Bank in Folsom, Calif.
The $1.5 billion-asset Central Valley said in a press release Thursday that it will pay $33.6 million in stock for the $202 million-asset Folsom Lake. The deal is expected to close in the fourth quarter.
Central Valley said it expects the deal to be 1.8% dilutive to tangible book value per share; it should take less than 2.5 years to earn back the dilution. The acquisition should be 3% accretive to Central Valley earnings per share in 2018.
Robert Flautt, Folsom Lake’s president and CEO, will join Central Valley through a transition period.
Folsom Lake will become the fifth acquisition for Central Valley dating back to 2005.
Folsom Lake’ Sacramento operations present “a timely opportunity to further our northern California growth potential,” James Ford, Central Valley’s president and CEO, said in the release. "We expect that there will be abundant opportunity for businesses, customers, employees, and the community.”
Central Valley was advised by Keefe, Bruyette & Woods and Buchalter. Folsom Lake was advised by Sandler O'Neill and King, Holmes, Paterno & Soriano.