Sierra Bancorp to buy OCB Bancorp in California
Sierra Bancorp in Porterville, Calif., has agreed to buy OCB Bancorp in Ojai, Calif.
The $2 billion-asset Sierra said in a press release late Monday that it will pay $35.7 million in stock for the $257 million-asset parent of Ojai Community Bank. The deal is expected to close in the fourth quarter.
OCB has $209 million in loans and $208 million in deposits.
Sierra said it expects the acquisition to be immediately accretive to earnings per share. It should take less than four years to earn back the deal’s expected 20% dilution to Sierra’s tangible book value.
“We have been impressed by Ojai's strong commitment to its communities, disciplined growth strategies, and success, and look forward to growing this part of our bank together," Kevin McPhail, Sierra’s president and CEO, said in the release.
Sierra was advised by Keefe, Bruyette & Woods and King, Holmes, Paterno & Soriano. OCB was advised by FIG Partners and Loren P. Hansen.