LOS ANGELES--(BUSINESS WIRE)--National Bank of California, the wholly owned subsidiary of NCAL Bancorp (OTCBB: NCAL) (“NCAL”) and Manufacturers Bank, a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation jointly announced today that they have entered into a purchase and assumption agreement to transfer the deposits and branch facility of NCAL’s full service branch office in Glendale, California to Manufacturers Bank. Under the terms of the agreement, Manufacturers Bank will assume substantially all of the deposits and purchase certain assets associated with the Glendale Regional Office. The loans of the branch office are not included in the transaction. As of October 31, 2012 deposits at this branch totaled approximately $12.2 million.
According to Henry Homsher, President of NCAL, “It was a difficult decision to proceed with the sale of the deposits of the Glendale Regional Office, as we have enjoyed wonderful relationships with our customers in the region. The transaction will allow us to redirect our full focus to our core geography in the Los Angeles and Orange County areas. We are confident we have found an institution that mirrors our customer service philosophy and are excited to introduce our depositors to Manufacturers Bank.”
Naresh Sheth, President and Chief Operating Officer of Manufacturers Bank, stated, “We are very pleased to announce our entry into the Glendale market, and we look forward to welcoming the employees and depositors of the Glendale Regional Office to the Manufacturers family. At Manufacturers Bank, our mission is to be ‘the bank of choice’ for middle market companies, a principle we take to heart and continue to deliver upon today. We are excited to serve the greater Glendale area, as we believe it is a natural complement to our other full service regional branches throughout California.”
The transaction is expected to be completed in late Q4 2012 or early Q1 2013 subject to regulatory approval and other customary closing conditions.
D.A. Davidson & Co. served as financial advisor and King, Holmes, Paterno & Berliner, LLP served as legal advisor for NCAL Bancorp. Horgan, Rosen, Beckham & Coren, LLP served as legal advisor for Manufacturers Bank.
About National Bank of California
National Bank of California is a full-service commercial bank that began operations in 1982 and had over $356 million in assets as of September 30, 2012. The Bank offers customized services to small and mid-sized businesses as well as individuals through strategically located regional offices in Los Angeles, the San Fernando Valley, and Orange County.
About Manufacturers Bank
Manufacturers Bank is a wholly owned subsidiary of Sumitomo Mitsui Banking Corporation (“SMBC”) and provides a full range of lending, deposit and cash management services to the California commercial middle-market business community through 10 regional bank centers. As of September 30, 2012 Manufacturers Bank had $2.1 billion in total assets, $1.3 billion in gross loans, $1.7 billion in total deposits and $281.5 million in shareholders’ equity. For more information, visit Manufacturers Bank's Web site at www.manufacturers-ca.com and SMBC's Web site at www.smbc.co.jp/global
Forward Looking Statements: The numbers in this press release are unaudited. Statements such as those regarding the anticipated development of the banks’ business, and the intent, belief or current expectations of the banks, their directors, or their officers, are "forward looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the banks’ performance, including their ability to generate loan and deposit growth, changes in interest rates, and regulatory matters.