Rabobank expects to retain all Napa Community Bank staff, including all senior management, commercial and branch employees. Dennis Pedisich will become the Napa Valley regional president for Rabobank, managing the local business for the bank.

The purchase is a step forward in Rabobank’s growth strategy to expand its branch presence into key agricultural areas such as the Napa Valley wine country, primarily to wineries and others in the food and agribusiness industry. Over the last 15 months, Rabobank has opened 12 new branches in California, bringing the total to 92. The bank also has 15 financial service centers, including one in Santa Rosa.

Ronald Blok, CEO of Rabobank, said: “We look forward to welcoming Napa Community Bank customers and employees to Rabobank. By combining our two banks, we will be able to offer all our customers increased convenience with a more extensive network of branches and ATMs, and also provide our full suite of banking products and services to a broader range of clients in the Napa Valley. We’ll do this while continuing to meet the high standards for service excellence and community engagement that have been the hallmark of Napa Community Bank’s success.”

Joseph Reid, chairman and CEO of Capitol, said: “We are pleased to partner Napa Community Bank with an organization like Rabobank, which will continue the bank’s tradition of high standards for performance and service as well as its commitment to serving the Napa community.

“This sale will serve to strengthen Capitol’s core capital ratios and support our objectives to redeploy capital to those affiliates currently facing challenges.”

Mr Pedisich said: “The entire staff is excited about this partnership with Rabobank, as we share the same core community banking values and approach to doing business. We’ve asked our board of directors to stay on as advisory board members, further demonstrating both Rabobank’s and Napa Community Bank’s continuing commitment to our market and our customers.”

The transaction is expected to be completed in mid-2010, subject to shareholder and regulatory approval.