Visalia, Yuba City agribusiness banks merging in $9.4 million deal

Visalia-based Suncrest Bank continues to grow, announcing Monday that it’s snapping up another agribusiness-focused institution in a merger deal.

Yuba City’s Sutter Community Bank will merge with Suncrest in an all-stock deal valued at about $9.4 million, making for about $300 million in combined assets.

Suncrest Bank was established in 2008 and took over Kingsburg’s former Citibank branch earlier this summer, making that office its third branch after Visalia and Porterville and its first branch in Fresno County. The bank has also made The Findley Reports’ 2014 list of commendable banks, based on its performance in 2013.

As of March 31, Suncrest Bank had about $200 million in assets, growing them by more than 49% in 2014 and placing it in the top 1.5% of all U.S. banks, according to Monday’s announcement.

Sutter Community Bank, which trades as SUTB on over-the-counter stock lists, operated one branch in Sutter County, with about $67 million in assets.

All four branches will operate as Suncrest Bank, with services remaining the same.

Sutter Community Bank’s shareholders will receive a fixed exchange ratio at closing of 1.2 shares of Suncrest Bank (SBKK) for each share of Sutter common stock. At Monday’s close of business, Suncrest stock was valued at $8.15.

Two directors from the Sutter board will join the combined bank’s board, with the remaining directors forming a local market advisory board. Suncrest Bank’s president and CEO, Ciaran McMullan, will remain president and CEO of the merged bank.

This is Suncrest Bank’s first acquisition of an existing branch, and it is still uncertain how long it will be until the deal closes, said McMullan. With all the approvals needed, it could be until the end of the year or beyond, he added.

Suncrest Bank was looking to expand its geographic coverage, and while Sutter Community is also an agribusiness bank, the type of farming it deals with is slightly different from what Suncrest Bank handlels, giving the combined bank a more diverse portfolio, he said.

“That’s why we’re so excited about being able to go up to Northern California,” McMullan said. “And you know, it’s all Central Valley.”

This story was originally published July 27, 2015 at 10:46 AM with the headline "Visalia, Yuba City agribusiness banks merging in $9.4 million deal."