FNB Bancorp (OTCMKTS:FNBG) and AMERICA CALIFORNIABK (OTCMKTS:ACAL) announced that they finalized a deal and Plan of Reorganization and Merger under which FNB Bancorp will buy America California Bank in an all-cash transaction.
The deal
Under the terms of the deal, the holders of ACAL common stock and preferred stock will obtain $10.60 per share. The deal has been collectively approved by the both company’s Board of Directors and is expected to end during the third quarter of 2015, depending upon the receipt of all essential regulatory approvals and the fulfillment of other regular closing terms, including the approval of American California Bank shareholders.
The acceptance
Each member of the American California Bank’s Board has accepted to vote all of his shares of bank’s stock in favor of the deal and urged that all other shareholders vote in favor of the deal at a special meeting to be scheduled for that purpose. FNB Bancorp anticipates the deal to contribute almost $1.9 million net of tax in 2016 on an asset base of nearly $134 million. The one-time costs associated with this deal are expected to be almost $2 million net of tax.
The highlights
The projected acquisition costs will be recorded by FNB Bancorp as well as First National Bank of Northern California after the deal completes. America California Bank reported net loans of almost $92 million at end of December 31, 2014.Total deposits were approximately $99 million.
The expert comments
Tom McGraw, the CEO of FNB Bancorp (OTCMKTS:FNBG), said that they are delighted to be able to get together the resources, customers, service cultures, and talents of America California with First National. They are strong local banks that understand customer needs, communities, and have developed services and products to be able to fulfill those needs for more than four decades.
In last trading session, the stock price of FNB Bancorp surged 0.17% to close the trading session at $28.95.
