Fresno-based Central Valley Community Bancorp announced that it will acquire Folsom Lake Bank under a merger deal signed by both parties.
Folsom Lake Bank, founded in 2007, operates three full-service branches in Folsom, Rancho Cordova and Roseville.
The transaction is subject to standard closing conditions, including regulatory approvals and approval by Folsom Lake Bank shareholders. CVCB anticipates finalizing the deal in this year’s fourth quarter.
Under terms of the agreement, CVCB will acquire the local banking company in a stock merger in which Folsom Lake Bank shareholders will be entitled to receive 0.80 shares of CVCB stock for each Folsom Lake Bank share. CVCB will assume the stock option plan and outstanding stock options of Folsom Lake Bank.
Officials said the deal’s value will fluctuate with changes in CVCB’s stock price through the actual closing date.
CVCB said Robert Flautt, president and CEO of Folsom Lake Bank, will join Central Valley Community Bank through the transition period.
The combined banks have estimated total assets of about $1.7 billion, officials said.
This marks CVCB’s second recent acquisition of a Folsom banking firm. In October, CVCB finalized its acquisition of Folsom-based Sierra Vista Bank. Sierra’s branches in Folsom, Cameron Park and Fair Oaks became Central Valley Community Bank branches.
There are 22 Central Valley Community Bank offices throughout the greater Sacramento region and San Joaquin Valley.