CommerceWest Bank in Irvine, Calif., announced Friday that it has agreed to acquire Discovery Bancorp in San Marcos, Calif., in an all-stock transaction.
Each share of the $171 million-asset Discovery is to be exchanged for 0.6579 share of the $255 million-asset CommerceWest.
The deal is valued at roughly $10.5 million, calculated from CommerceWest's $8.35 share price early Friday, and is expected to close in the second or third quarter.
Discovery's subsidiary, Discovery Bank, reported three consecutive quarterly losses, totaling $3.8 million, at the end of 2008, according to the Federal Deposit Insurance Corp. The 2001-chartered bank reported total risk-based capital of 12.80% and Tier 1 risk-based capital of 11.54%.
