Regents Bancshares, the parent company of La Jolla-based Regents Bank, agreed to be acquired by Grandpoint Capital Inc., the Los Angeles parent firm of Grandpoint Bank, with about $875 million in total assets, the companies announced Sept. 6.
Terms of the sale, which require shareholder and regulatory approvals, weren’t disclosed. Following the transaction, estimated to be done by the first quarter of 2012, Regents, which held $355 million in assets as of June 30, would continue to operate as a wholly owned subsidiary of Grandpoint Capital, retain its name, current management team and staff. Regents has branches in downtown San Diego, Carlsbad, El Cajon and Vancouver, Wash.
“This is a merger that makes us an even stronger company … and further sets us apart as the leader amongst San Diego area community banks,” said Regents CEO Dan Yates, who helped launch the bank in 2001.
After stumbling last year caused by higher amounts of problem loans, Regents reported net income of $822,000 for the first half of this year, compared with a net loss of $898,000 for the first half of 2010.
Grandpoint Bank was launched last year with an initial capital investment of $75 million, and has eight offices in Los Angeles and Orange counties. It’s also the majority owner of the Bank of Tucson, which has two offices.
— Mike Allen