Sierra Bancorp (BSRR) in Porterville, Calif., has agreed to buy Santa Clara Valley Bank (SCVE) in Santa Paula, Calif.
The $1.5 billion-asset Sierra will pay $15.3 million in cash for the $127 million-asset Santa Clara Valley Bank. The consideration consists of $12.3 million, or $6 a share, will go to common shareholders, while $3 million is designated for preferred shareholders.
The Santa Clara Valley is a strong agricultural region in close proximity to our primary market, the southern San Joaquin Valley, James Holly, Sierras chief executive, said in a press release Thursday. The market is very similar to the region we already serve and this opportunity is a natural extension for us.
Sierra said it expects the acquisition to be immediately accretive to earnings per share.
Keefe, Bruyette & Woods and King, Holmes, Paterno & Berliner advised Sierra. MJ Capital Partners and Horgan, Rosen, Beckham & Coren advised Santa Clara Valley Bank.