Certainly we’ll see more consolidation among both lenders and technology vendors alike in the months ahead. For example, Americas United Bank and Silvergate Bank, a wholly-owned subsidiary of Silvergate Capital Corporation, jointly announced today that they have entered into a purchase and assumption agreement for Americas United Bank to acquire the deposits and branch facility of Silvergate Bank’s full service branch office in Lancaster, California.
Under the terms of the agreement, Americas United Bank will assume substantially all of the deposits and purchase certain assets associated with the Lancaster Regional Office. As of November 30, 2013, deposits at this branch totaled approximately $45.7 million; no loans are included in this transaction. Americas United Bank will pay a deposit premium of approximately 0.50% in this transaction.
According to Alan J. Lane, President and Chief Executive Officer of Silvergate Bank, “It was a difficult decision to proceed with the sale of the deposits of the Lancaster Regional Office, as we have enjoyed wonderful relationships with our customers in the region. The transaction will allow us to redirect our full focus to our core geography in the greater San Diego area. We are confident we have found an institution that mirrors our customer service philosophy and are excited to introduce our depositors to Americas United Bank.”
Adriana M. Boeka, President and Chief Executive Officer of Americas United Bank, stated, “We are very pleased to announce our entry into the Lancaster market, and we look forward to welcoming the employees and depositors of the Lancaster Regional Office to the Americas United Bank family. At Americas United Bank, our vision is to provide a full-range of business and personal banking services to small-to-medium-sized businesses, professionals and entrepreneurs. We are excited to serve the greater Lancaster area, as we believe it is a natural complement to our other full service regional branches in Glendale and Downey, California.”
The transaction is expected to be completed in late Q1 2014 or early Q2 2014 subject to regulatory approval and other customary closing conditions.
Western Financial Corporation served as financial advisor and McKenna Long & Aldridge LLP served as legal advisor for Silvergate Bank. FinPro Capital Advisors Inc. served as financial advisor and King, Holmes, Paterno & Berliner, LLP served as legal advisor for Americas United Bank.
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.