The transaction, which has been approved by the boards of directors of the Company and CNB, will provide a significant enhancement to Sterling’s current operations in Southern California. The transaction is subject to approval by CNB shareholders and bank regulatory agencies, and other customary conditions of closing. It is expected to be completed during the third quarter of 2013.
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"Commerce National Bank is a solid, business-focused bank that we expect will provide substantial synergies with our current operations in the Orange County market," said David DePillo, vice chairman and chief lending officer of Sterling. "In addition to a high quality, relationship-based loan portfolio, CNB also brings us a scalable equipment leasing business that fills a void in our current commercial product set."
Mark Simmons, president and chief executive officer of CNB, said, "We are excited to be entering into this transaction with Sterling. This is an excellent outcome for our shareholders, and we believe our customers, employees, and community will benefit from the wide array of products and services offered by the combined company. We are partnering with a company that shares our values and outlook on the opportunities in this environment, and we look forward to continuing to serve our clients the best way we can."
As of March 31, 2013, CNB had assets of approximately $242.7 million, loans of $146.3 million, deposits of $211.4 million, and shareholders’ equity of $30.1 million. The Company expects the transaction will be accretive to earnings per share during the first year following completion with a tangible book value dilution earn-back period of approximately three years.
Bingham McCutchen LLP served as the legal advisor to the Company and Richard E. Knecht PC served in the same capacity for CNB. Keefe Bruyette & Woods, Inc., a Stifel Company, served as the financial advisor to CNB.
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