SANTA ROSA, Calif. -- The commercial bank subsidiary of Redwood Empire Bancorp signed a definitive agreement to acquire with Codding Bank, Rohnert Park, Calif., for $6.8 million in cash.
The per-share price is about 1.26 times March 31 book value.
"With $50 million in assets and three branches in our current market in the Santa Rosa area, Codding is an excellent addition to our franchise," said John H. Downey Jr., Redwood's chairman and CEO.
"We expect the acquisition to be immediately accretive to earnings," he said. "And with NBR's technological expertise and experience in several specialized business niches, we believe there are opportunities to further improve efficiency, increase revenues, and enhance the profit margins of the combined entity."
Redwood owns National Bank of the Redwoods and Allied Bank, a savings institution. The company, with assets of $476 million, operates throughout Northern California.
