Coast National Bank sold for $13.8 million
Sierra Bancorp, the holding company of Bank of the Sierra, announced it is buying Coast Bancorp of San Luis Obispo County, operator of Coast National Bank, according to a press release from Sierra Bancorp. Under the agreement the outstanding shares of Coast Bancorp will be entitled to receive aggregate consideration of $3.2 million in cash and 581,753 shares of Sierra Bancorp common stock.
Based on the closing price of Sierra Bancorp common stock on January 4, 2016, the transaction would have a value of $13.8 million, or $2.37 per Coast Bancorp common share. However, the deal value will fluctuate with changes in Sierra Bancorp’s stock price.
Sierra Bancorp President and CEO Kevin McPhaill said, “We are excited that the employees and customers of Coast National Bank will join the Bank of the Sierra family. Expansion to California’s central coast presents an exciting growth opportunity for Bank of the Sierra. Similar to Coast National Bank, Bank of the Sierra is committed to providing outstanding service coupled with a commitment to improving the communities in which they serve.”
Anita Robinson, president and CEO of Coast Bancorp said, “Bank of the Sierra is the appropriate fit to continue the commitment by Coast National Bank for the past 18 years in our communities. Our customers will have access to many more products and services together with the additional benefit of a larger lending limit; enabling us to meet all of the needs of our customers and our community. This transaction benefits our shareholders who have been steadfast during difficult times and rewards them with shares in BSRR, providing opportunity into the future.” Robinson continued, “I am also excited to become part of the Bank of the Sierra team as the market president for the San Luis Obispo area upon completion of the acquisition.”
The boards of Sierra Bancorp and Coast Bancorp unanimously approved the transaction, which is subject to customary conditions of closing including required regulatory approvals and the approval by the shareholders of Coast Bancorp.
Established in 1997, Coast National Bank is a local community bank serving the needs of consumers and businesses through three locations throughout San Luis Obispo County. As of September 30, 2015, the bank had approximately $146.4 million in assets and serves the communities of San Luis Obispo, Arroyo Grande, Paso Robles and Atascadero.
Sierra Bancorp is a publicly-traded company with approximately $1.7 billion in assets. Headquartered in Porterville, California, the company operates primarily in the central and southern sections of the San Joaquin Valley. The bank specializes in agricultural lending and works with many of the businesses in that region. Since opening for business in January 1978, the bank has grown to be the largest independent bank headquartered in the South San Joaquin Valley.