The transaction is expected to fanalize in the third quarter of this year, subject of all necessary regulatory and shareholder approvals, as well as other customary closing conditions.
AmericanWest Bank chairman and CEO Scott Kisting said that Security Business Bank has built an impressive reputation in the Greater San Diego area and it is a matter of pleasure to welcome their skilled employees and valued customers to AmericanWest Bank.
"We have found a merger partner who shares our core values and in one of the most vital, energetic markets in the Western United States. We’re a good fit — two financially strong banks coming together to better serve our collective customers — which makes this a good business decision," Kisting added.
Security Business Bank CEO Paul Rodeno said that the merger of the bank with AmericanWest Bank represents the next stage of growth for Security Business Bank.
"Access to additional products and services, expanded infrastructure and new office locations will help solidify our position as San Diego’s premier, community-focused business bank," said Rodeno.
Under the terms of the merger agreement, shareholders of Security Business Bancorp will receive aggregate consideration in cash equal to nearly $26m at closing, subject to adjustment as mentioned in the agreement.
Security Business Bank operates four offices which includes Downtown San Diego, Carmel Valley, Carlsbad and Escondido and complements AmericanWest’s existing Southern California locations, providing customers greater access to management and services.
As of 31 December 2011, AmericanWest Bank owned total assets of $2.3bn and deposits of nearly $2bn, while Security Business Bank managed total assets of about $233m and total deposits of $181m, during the same period.
Roth Capital Partners and Sterne, Agee & Leach served as advisers to Security Business Bancorp in this transactio, with a Fairness Opinion performed by FIG Partners while AmericanWest Bank was advised by Skadden, Arps, Slate, Meagher & Flom.
