The bank assumed about $149m in deposits and $1.8m in fixed assets. The acquired branches are located in Colusa, Corning, Orland, Willows, and Yreka.
The bank, which currently operates nine branches in northern California, plans to use liquidity offered by the acquisition to redeem about $17.5m of brokered time deposits and to repay a Federal Home Loan Bank of San Francisco variable rate advance of $75m.
The measures are expected to lower future interest expense, enhance the bank’s net interest margin and improve earnings in the future.
Redding Bank of Commerce president and CEO Randall Eslick said: "We have made significant strides in executing on our strategy to expand our footprint in northern California.
"We will use our new liquidity to reposition our funding mix and support loan growth."
Redding Bank of Commerce offers commercial banking and financial services via nine offices located in Northern California. It was opened on 22 October 1982.
It currently operates under two separate names which include Redding Bank of Commerce and Sacramento Bank of Commerce.
Bank of Commerce Holdings has administrative offices in Redding, California. The company is a federally insured California banking corporation.
It provides a range of financial services including direct courier, online cash management, merchant capture, electronic statements, and mobile banking.
Image: Bank of Commerce Holdings has acquired five Bank-of -America branches in northern California. Photo: courtesy of stockimages/FreeDigitalPhotos.net.
