Fresno’s Security First Bank announced Wednesday that its pending merger agreement with SunPac Financial of Los Angeles is being extended again, this time until mid-July.
The merger was first announced by the boards of the two companies in early 2015 but continues to await approval by regulators with the California Department of Business Oversight and the Federal Deposit Insurance Corp. for SunPac Financial to complete the merger. The merger agreement calls for SunPac Financial to offer Security First shareholders $10.50 for each share of stock. SunPac Financial is a subsidiary of SunPac LLC.
The two companies initially expected regulatory approval for the merger by the middle of last year but have gone through several extensions of the merger agreement since then.
Security First’s announcement indicated that the extension depends upon SunPac LLC to pay $150,000 by Friday to reimburse Security First for expenses related to the merger. That’s on top of $250,000 paid by SunPac LLC in February, also for merger-related expenses.