Community Valley Bank Buys Umpqua Borrego Springs
Last updated 3/27/2018 at 9:22am
Community Valley Bank (“CVB”), a wholly owned subsidiary bank of CMUV Bancorp (OTC Pink: CMUV) (the “Company”), announced the signing of a purchase and assumption agreement to acquire a branch location from Roseburg, Oregon based Umpqua Bank (“Umpqua”).
The branch location in Borrego Springs, California with approximately $35 million in deposits, is the only full-service branch location in Borrego.
The branch location was originally acquired by Umpqua as part of its acquisition of Sterling Financial Corporation, completed in April 2014.
The branch will begin operating under the CVB name as CVB’s fifth branch location in Southern California immediately following the close of the transaction. The deposit premium is estimated to be 3.25% of deposits acquired.
“We are excited to add this branch location to our footprint in Southern California and deploy our growing capital base into a new market,” said Jon Edney, President and CEO of CVB.
“This transaction will allow us to extend our personalized service and products to the Borrego Springs community. We look forward to welcoming the Borrego Springs branch employees and customers to Community Valley Bank.”
“As customer preferences change how we provide banking services to our customers, Umpqua remains strongly committed to supporting our communities, especially those where this shift results in a store closure or consolidation,” said Brian Read, Umpqua’s executive vice president of retail banking.
“In this case, we’re pleased that Community Valley Bank has agreed to purchase our Borrego Springs location and will continue providing personal banking services locally. The partnership is a win-win for customers and the community.”
The purchase of the branch location is expected to close in early third quarter of 2018, and is subject to certain closing conditions, including receipt of regulatory approval. MJC Partners, LLC acted as financial advisor to CVB and Breakwater Law Group acted as legal counsel.