BOCH, a $927m bank holding company, purchased 51% of the capital stock of Simonich in 2009. BOCH is currently selling back the stake to Simonich.
The sale will be based on a return of capital, which is generally expected to be cash flow neutral – and places the two parties for other strategic growth investments.
Bank of Commerce Holdings president & CEO Patrick Moty said the bank would focus on core banking, redeploying capital. "We will continue to look for favorable opportunities for expansion, including acquisitions, as part of our overall growth strategy," Moty added.
BOCH is the parent company of Redding Bank of Commerce and Roseville Bank of Commerce.
Bank of Commerce Mortgage Bank president & CEO Scott Simonich commented, "This agreement reaffirms our commitment to focus on our strategy of building our mortgage banking franchise significantly in multiple locations, and to continue our valuable lending relationship with Redding Bank of Commerce."
The transaction is expected to close in the third quarter of 2012.
