Founders Community Bank in SLO merges with Fresno’s Premier Valley Bank
Founders Community Bank of San Luis Obispo and Premier Valley Bank of Fresno on Monday announced their parent companies agreed to a merger valued about $29.1 million.
Founders will merge into Premier Valley, but will continue to operate under the Founders Community Bank name. A Premier Valley branch under construction in San Luis Obispo will carry the Founders branding.
Under the agreement, the outstanding common shares of Founders Bancorp will be converted into cash, shares of Heartland Financial common stock, or a combination at the election of Founders’ shareholders. The deal, subject to regulatory and stockholder approval, is expected to close during the first quarter of next year.
Founders, a wholly owned subsidiary of Founders Bancorp, is an 11-year-old bank with about $100 million in total assets, $107 million in loans and $180 million in deposits as of Sept. 30. The bank serves customers in San Luis Obispo, Paso Robles and Morro Bay, and has a small-business lending center in Atascadero.
Premier Valley Bank is a wholly owned subsidiary of Iowa-based Heartland Financial. Premier Valley will have nine full-service branches and one loan production office once the merger closes.
Heartland Financial reported second quarter net income of $21 million, a 40 percent increase over those earnings from the previous year. Third-quarter results were not yet reported.
Heartland also owns Yosemite Bank, and together with Premier Valley, the institutions have assets worth more than $680 million, Heartland said.
“We are growing our presence in California, and we see the San Luis Obispo County market area as an economically strong and vibrant region,” Premier’s CEO J. Mike McGowan said.
Thomas J. Sherman, president and CEO of Founders Community Bank, said in a prepared statement that local bank officials are “pleased to partner with a strong public company with an expanded array of products and services that’s committed to face-to-face customer service and locally-based community banking.”
Heartland Financial trades on the Nasdaq market under the symbol HTLF. It closed Monday at $37.45 per share, up slightly from its Friday closing price of $37.40 per share.
Founders Bancorp stock, on the OTC (over the counter) board under FBCP, was trading Monday at $20.70 per share, up from $13.37 at the market’s close Friday.
BoNhia Lee: 559-441-6495, @bonhialee
This story was originally published October 31, 2016 at 1:40 PM with the headline "Founders Community Bank in SLO merges with Fresno’s Premier Valley Bank."