Presidio Bank has completed its merger into Heritage Bank of Commerce in an all-stock transaction valued at around $200.3m.
Headquartered in San Francisco, Presidio is a full-service commercial bank which serves small to mid-size businesses and their owners. It has additional branches in Palo Alto, San Mateo, San Rafael and Walnut Creek, California.
Presidio had about $906m in total assets as of 31 March 2019 and a return on average assets of 1.44% for the first quarter of this year.
The merger increases Heritage’s total assets to about $4.1bn, with total loans outstanding of approximately $2.5bn and total deposits of around $3.4bn.
It also increases Heritage’s total branches to 17 in the San Francisco Bay Area, following branch consolidation.
D.A. Davidson & Co. served as the financial adviser to Heritage in the transaction, while Buchalter was its legal counsel. Sandler O’Neil + Partners was the financial adviser of Presidio, and Manatt Phelps & Phillips was its legal counsel.
Heritage Bank of Commerce president and CEO Keith Wilton said: “This merger expands Heritage’s presence and density in the vibrant Greater San Francisco Bay Area, and complements Heritage’s franchise, both strategically and culturally.
“The combination of our two organizations provides the opportunity to create operational efficiencies and enhance shareholder value, while offering Presidio’s customers a broader range of products, increased lending limits and an expanded branch delivery system.”
Heritage Bank of Commerce is a California state-chartered bank headquartered in San Jose. It has been conducting business since 1994.