The merger combines two of the leading community banks in the South Coast region and will result in an expanded footprint with branches in Santa Barbara, Montecito, and Goleta, as well as full-service Mortgage and Small Business Administration lending departments. The merger will allow the resulting bank a legal lending limit large enough to meet the needs of the community and higher than either institution previously held.
“The merger of our two local financial institutions is very powerful. Our customers and the community will now have additional branch locations, expanded product offerings, and state-of-the-art technology paired with outstanding customer service and responsive, local decision making,” said Jeff DeVine, President and CEO of American Riviera Bank.
Upon completion of the merger, which was unanimously approved by the boards of directors of both banks, Jeff DeVine will continue in his role as President and Chief Executive Officer. The Bank of Santa Barbara’s Chief Operating Officer Joanne Funari will continue in her role as Executive Vice President and Chief Operating Officer of the combined bank.
“This is extremely exciting for our community! Everyone in the Santa Barbara area will benefit from this partnership of two incredible banks coming together to form one local bank that our community can be proud of. A bank that is absolutely committed to individuals, businesses, and non-profits right here. Alone we are great, but together we are Extraordinary!” said Joanne Funari, Executive Vice President and Chief Operating Officer of The Bank of Santa Barbara.
The new Board of Directors, all of whom have deep ties to the Santa Barbara community, will be comprised of representatives from both boards. Lawrence Koppelman, the current Board Chair of American Riviera Bank, will continue in his role.
Shareholders of The Bank of Santa Barbara are expected to receive a total of 1,586,000 shares of American Riviera Bank common stock equating to an exchange ratio of 0.8546 shares of ARBV for each common share of The Bank of Santa Barbara. Based on the $9.70 closing price of ARBV as of July 14, 2015, consideration for each common share of The Bank of Santa Barbara is $8.29 and the total consideration is $15.4 million. The merger is expected to be accretive to earnings in 2016 and beyond.
The merger is expected to close in the fourth quarter of 2015 and is subject to the closing conditions in the definitive agreement, including approval of regulatory agencies and the shareholders of both banks.
In connection with today’s announcement, a detailed investor presentation has been posted here. The previously scheduled annual shareholders meeting on July 28, 2015 has been postponed. A new meeting will be scheduled in the 4th quarter.
American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers in Santa Barbara and surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of 400 local shareholders. The headquarters branch is at 1033 Anacapa Street in Santa Barbara and a branch is located at 525 San Ysidro Road in Montecito. For the past three years, the bank was named a “Premier Performer” by the Findley Reports. For more information visit www.americanrivierabank.com or call (805) 965-5942.
The Bank of Santa Barbara is a state-chartered bank which opened for business on December 19, 2005 and was purchased from a national bank holding company and recapitalized by local investors in November 2009. The Bank is 100% locally-owned and operated and is headquartered at 12 E. Figueroa Street in Santa Barbara with a branch at 5880 Calle Real in Goleta. The Bank is dedicated to providing state-of-the-art banking solutions and customer service reminiscent of the days when bankers knew every client personally. With local ownership and management, The Bank understands the Santa Barbara area market and has the ability to offer fast, local decision-making and financial support to local businesses, non-profits, and individuals. The Findley Report recognized The Bank of Santa Barbara for “Premier Performance” in 2012. Western Independent Bankers (WIB) also named The Bank as the winner in the “Under $150.0 Million in Assets” category for its creative, forward-thinking recapitalization strategy. For more information, visit www.bankofsantabarbara.com or call (805) 730-7860.
American Riviera Bank was assisted in this merger by financial advisor Keefe, Bruyette and Woods and outside counsel Horgan, Rosen, Beckham & Coren, LLP. The Bank of Santa Barbara was assisted in this merger by financial advisor D.A. Davidson & Co and outside counsel Sheppard, Mullin, Richter and Hampton, LLP.
American Riviera Bank
Jeff DeVine, President and CEO
The Bank of Santa Barbara
Joanne Funari, Executive Vice President and COO