Private Equity Firm to Buy 2 Locally Based BanksFriday, January 20, 2012
Grandpoint Capital, a Los Angeles private equity firm, announced Jan. 20 a definitive agreement to buy Escondido-based California Community Bank, to go along with its purchase of San Diego-based Regents Bank.
With the CCB acquisition, Grandpoint would gain about $244 million in assets and four new offices to go with the $355 million in assets and four offices it gets with the Regents acquisition.
Grandpoint said it plans to have subsidiary Regents Bank conduct the acquisition of CCB and integrate those offices and operations into Regents, which retains its name and management.
Dan Yates, Regents’ chief executive, said once the CCB deal is done, the combined assets of the two former local lenders will be about $600 million. Yates remains the CEO, and Tom Young retains the chairman’s role of Regents. No word yet on what happens to Larry Hartwig, CCB’s chief executive who founded the bank in 2003.
Grandpoint said it’s paying $30 million for CCB, plus CCB’s adjusted net profit before the closing, expected in the third quarter of this year.
Neither Regents Bank nor Grandpoint disclosed price paid for Regents.
Don Griffith, Grandpoint chairman and CEO, said he’s known Hartwig and the bank for years. “The bank is well managed and its business focus is complementary to our own,” he said.
Grandpoint Capital, launched in 2010 with an initial capitalization of $75 million, formed Grandpoint Bank in Los Angeles. As of the end of 2012, it held $855 million in assets and had eight offices in the state. It’s also the majority owner of the Bank of Tucson, with two offices.