Santa Clara Valley Bank To Be Bought By Sierra Bancorp For $15.3 Mln In Cash

(RTTNews) - California -based Santa Clara Valley Bank, N.A. (SCVE) Thursday announced that it has signed a definitive agreement to be acquired by Sierra Bancorp (BSRR), the holding company of Bank of the Sierra, for aggregate cash consideration of $15.3 million.

The consideration consists of $12.3 million or $6.00 per share to common shareholders and cash consideration of $3.0 million to preferred shareholders to retire outstanding preferred stock and associated warrants.

Included in the $12.3 million consideration, Sierra will pay $700,000 to cash out existing in-the-money warrants.

The company noted that the price per share represents approximately 109% of Santa Clara Valley Bank's tangible book value as of March 31. Sierra Bancorp expects the acquisition to be immediately accretive to earnings per share, and will yield a tangible book value earnback of less than 3.5 years and an IRR in excess of 20%.

The boards of Sierra Bancorp and Santa Clara Valley Bank unanimously approved the deal, which is subject to customary conditions of closing including required regulatory approvals and approval by the shareholders of Santa Clara Valley Bank.

Founded in 1998, Santa Clara Valley Bank offers banking services throughout the Santa Clara Valley, the greater Ventura County region and the Santa Clarita Valley. As of March 31, the bank operated three branches in addition to its headquarters in Santa Paula and had approximately $127 million in assets.

James Holly, Chief Executive Officer of Sierra Bancorp, said, "The Santa Clara Valley is a strong agricultural region in close proximity to our primary market, the Southern San Joaquin Valley. The market is very similar to the region we already serve and this opportunity is a natural extension for us. In addition beyond the Santa Clara Valley, we believe that we can serve the commercial and residential communities of Ventura, Oxnard and Santa Clarita."

In the deal, Sierra Bancorp was advised in the transaction by Keefe, Bruyette & Woods, a Stifel Company, as financial advisor. Santa Clara Valley Bank, N.A. was advised by MJ Capital Partners, LLC as financial advisor.

Sierra Bancorp shares closed Thursday's trading at $14.98, down $0.29 or 1.90 percent.