Community West Bancshares in Goleta, Calif., announced Monday that it is selling its subsidiary Palomar Community Bank in Escondido, Calif., to a partnership that includes Centennial First Financial Services of Redlands, Calif., and Palomar's senior management.
The deal, which is expected to close in mid-2001, is valued at $10.5 million. The buyers are acquiring all of the outstanding stock of Palomar in exchange for a combination of debt and cash.
Centennial is the parent company of $88 million-asset Redlands Centennial Bank. It has a branch in Redlands and a new office expected to open in Brea, Calif., in the first quarter. Under terms of Centennial's agreement with Community West, Palomar would keep its senior management and name.
Community West, which has assets of $415 million and is headquartered on California's Central Coast, bought Palomar in 1998 to gain a presence in booming Southern California. Lew Stone, Community West president and chief executive officer, said he is selling Palomar to get cash for further development of the principal subsidiary, $338 million-asset Goleta National Bank.