Westamerica Bancorp. has completed its acquisition of Fresno-based Vallicorp Holdings.
Westamerica paid about $290 million worth of stock for $1.3 billion- asset Vallicorp, or about $20.11 per share. The company now has $3.7 billion of assets.
Under the agreement, each share of Vallicorp stock was exchanged for 0.3479 share of Westamerica stock, resulting in five million new Westamerica shares being issued. Westamerica now has 9.5 million shares outstanding.
Westamerica officials estimated that the company would have about $10 million of after-tax merger expenses in the second quarter, including investment banking fees, severance costs, and writedowns of leases and equipment.
Vallicorp shareholders will also be eligible for Westamerica's quarterly dividend of 26 cents per share of common stock, payable Wednesday to shareholders of record April 18.
ValliWide Bank will remain a separate subsidiary until its expected merger, subject to regulatory approval, with Westamerica Bank in June. The bank currently has 54 branches in 14 central California counties, but 22 are slated to be closed.