EL CENTRO, Calif.--(BUSINESS WIRE)--Community Valley Bank (“CVB”), a wholly owned subsidiary bank of CMUV Bancorp (OTC Pink: CMUV) (the “Company”), today announced the signing of a purchase and assumption agreement to acquire a branch location from Roseburg, Oregon based Umpqua Bank (“Umpqua”).
The branch location in Borrego Springs, CA with approximately $35 million in deposits is the only full-service branch location in the city of Borrego Springs. The branch location was originally acquired by Umpqua as part of its acquisition of Sterling Financial Corporation, completed in April 2014. The branch will begin operating under the CVB name as CVB’s fifth branch location in Southern California immediately following the close of the transaction. The deposit premium is estimated to be 3.25% of deposits acquired.
“We are excited to add this branch location to our footprint in Southern California and deploy our growing capital base into a new market,” said Jon Edney, President and CEO of CVB. “This transaction will allow us to extend our personalized service and products to the Borrego Springs community. We look forward to welcoming the Borrego Springs branch employees and customers to Community Valley Bank.”
“As customer preferences change how we provide banking services to our customers, Umpqua remains strongly committed to supporting our communities, especially those where this shift results in a store closure or consolidation,” said Brian Read, Umpqua’s executive vice president of retail banking. “In this case, we’re pleased that Community Valley Bank has agreed to purchase our Borrego Springs location and will continue providing personal banking services locally. The partnership is a win-win for customers and the community.”
The purchase of the branch location is expected to close in early third quarter of 2018 and is subject to certain closing conditions, including receipt of regulatory approval. MJC Partners, LLC acted as financial advisor to CVB and Breakwater Law Group acted as legal counsel.
About Community Valley Bank / CMUV Bancorp
CMUV Bancorp is the parent company of Community Valley Bank which began operations on October 1, 2007. CVB was started by a group of local small business owners with the idea of bringing community banking back to the Imperial Valley. CVB had an original plan to provide individualized banking to the business community; local people, making local decisions to help businesses grow and prosper. For more information, visit www.yourcvb.com.
About Umpqua Bank
Umpqua Bank, an Oregon-based community bank recognized for its entrepreneurial approach, innovative customer experience, and distinctive banking solutions, has locations across Oregon, Washington, California, Idaho and Nevada. For more information, visit www.umpquabank.com.
Forward Looking Statements
Certain statements in this press release, including statements regarding the anticipated acquisition of the branch office in Borrego Springs, and the intent, belief or current expectations of the Company, its directors or its 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 regulatory approvals of the acquisition of the branch office, core processing system conversion, retention of branch personnel, branch customer reaction to the acquisition, integration costs and timing, generally, the local and national economy, implementation of the Company’s business plans, loan performance, interest rates, and regulatory matters.