Suncrest Bank in Visalia, Calif., has agreed to buy Sutter Community Bank in Yuba City, Calif., for $9.4 million in stock.
The deal would combine "two of the leading agribusiness focused community banks in California's north and south central valley," the $195 million-asset Suncrest said in a news release.
Shareholders of the $66 million-asset Sutter Community would receive 1.2 shares of Suncrest stock for each Sutter Community common share. The combined entity would have roughly $300 million of assets and four branches.
Two directors from Sutter Community would join the board of the combined bank with the remaining Sutter Community directors forming a new local advisory board with a focus on the Yuba City and Sutter markets.
"We have been actively looking for opportunities to expand our geographic exposure beyond the south valley," Ciaran McMullan, chief executive of Suncrest, said in the release.
Vining Sparks was financial adviser to Suncrest. King, Holmes, Paterno & Soriano was its legal counsel. MJ Capital Partners was financial adviser to Sutter Community. Loren P. Hansen was Sutter's legal counsel .