Mid-State Bank announced plans Friday to merge with BSM Bancorp, Santa Maria, Calif., in a pooling-of-interests transaction valued at $90 million.
The deal is slated to close in the third quarter. It would create a new holding company, Mid-State Bancshares, with $1.2 billion of assets.
Mid-State shareholders would own about 70% of the new company. Shareholders of BSM, parent of Bank of Santa Maria, would own the remaining 30%. Mid-State said the new entity would be the largest independent banking company in San Luis Obispo and northern Santa Barbara counties.
"We believe the similar business philosophies and values of the two banks provide an excellent opportunity to ... contribute the best financial products and services in our marketplace," Carrol R. Pruett, president of Mid-State, said in a prepared statement.
Mr. Pruett is to become president and chief executive officer of Mid- State Bancshares.
Albert L. Maguire, chairman of Mid-State Bank, would become chairman, and A.J. Diani, BSM Bancorp's chairman, would be vice chairman.
William A. Hares, president and CEO of BSM Bancorp, would be executive vice president.
Founded in 1961, Mid-State operates 24 branches and has $842 million of assets. Bank of Santa Maria, founded in 1978, has 12 branches and $344 million of assets.