US-based commercial bank Genesis Bank has agreed to acquire Excel Bank, a trade name of EH National Bank, in an all-cash transaction.
The deal will not require additional capital, as Genesis Bank’s strong capital position, anticipated tax benefits, and balance sheet restructuring are expected to support the transaction.
Established in 2005, Excel Bank has operated as a community bank serving small businesses, commercial and multifamily real estate investors, property management firms, and homeowners associations across Southern California.
The bank reported total assets of $300m, $238m in loans, $242m in deposits, and $23m in tangible common equity as of 31 December 2024.
Excel Bank CEO and director Charles Thomas said: “The combination of Genesis Bank and Excel Bank will bring enhanced services to Excel Bank clients and create future opportunities for employees.
“Genesis Bank is a dynamic organisation with a state-of-the-art technology platform, and shares the same passion as Excel Bank for creating the best possible client service experience.”
Following the closing of the, the combined entity will continue to operate as Genesis Bank. The deal is projected to be highly accretive to Genesis Bank’s shareholders.
Besides, the merged bank will have projected total assets exceeding $400m, with a tangible equity-to-assets ratio of over 14%.
It will also maintain a significant liquidity position with an on-balance sheet liquidity ratio exceeding 29% and minimal reliance on wholesale or brokered funding. The pro forma loans-to-deposits ratio is expected to be approximately 90% at closing.
The combined entity will operate from three locations in Southern California, namely Genesis Bank’s headquarters in Newport Beach, a Los Angeles office in Beverly Hills, and an Inland Empire office in Temecula.
Headquartered in California, Genesis Bank offers various products, services, and solutions, including traditional commercial business, small business administration (SBA), income property, and owner-occupied commercial real estate loan and deposit.
The bank also provides treasury management, escrow, and Section 1031 exchange services and solutions.
Genesis Bank chairman and CEO Stephen Gordon said: “We’re excited to announce we’ve entered into an agreement to acquire Excel Bank. We look forward to welcoming and supporting Excel Bank’s clients and to working with the Excel team on a smooth and seamless integration process.”
Subject to shareholder and regulatory approvals, as well as customary conditions, the transaction is anticipated to be completed by mid-2025.
