AUBURN, Calif.--(BUSINESS WIRE)--Community 1st Bank (OTCBB:CFBN), announced that its Board of Directors has approved the formation of a bank holding company for the Bank. The proposed reorganization will be effected through a share exchange in which each of the Bank's shareholders will receive one share of common stock of Community 1st Bancorp ("Bancorp") in exchange for each share of the Bank's common stock, including shares of common stock to be issued upon the conversion of the Bank’s Series C preferred stock. Bancorp is a new corporation that is being organized for the purpose of the reorganization, and its principal executive officers and directors will be the same as those of the Bank.
“The formation of Community 1st Bancorp will provide a structure to expand the Bank’s options and capacity to continue growth of its balance sheet,” stated James J. Kim, President and Chief Executive Officer.
Following the reorganization, the Bank's shareholders will be shareholders of the new holding company, and the holding company will be the Bank's parent company. The Bank will continue to exist as a California bank and to be managed by its current Board of Directors and officers, and will continue the same business in which it presently is engaged at its presently established branch offices.
Completion of the reorganization is subject to approval by the Bank's shareholders and regulators. A special meeting of shareholders is anticipated to be held on November 16, 2015 for the purpose of voting on approval of the reorganization, and proxy materials containing additional information about the meeting and the reorganization will be distributed to shareholders. Subject to receipt of all required approvals, the Bank hopes the reorganization will be completed by the end of the year 2015.
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville and Auburn and a loan production office in Sacramento, California. Community 1st Bank offers a wide range of business and consumer deposit products including remote deposit capture, health savings accounts, online banking, mobile banking and cash management services. The Bank also offers a full complement of loan products, including commercial, consumer, and real estate loans. For more information about the Bank, visit the Bank’s website at www.community1bank.com.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the ability to control costs and expenses, changes in the interest rate environment and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.