San Diego Business Journal

Security Business Bank Shareholders OK Sale

By Mike Allen Friday, May 25, 2012

Security Business Bank of San Diego shareholders approved the sale of the $225 million community bank to Spokane, Wash.-based AmericanWest Bank at the May 17 shareholders meeting, the bank announced May 24.

When the transaction was first announced March 27, the agreement called for SBB shareholders to receive $14.32 per share based on the stock price in late February. Its May 23 closing price was $14.

According to the proxy statement, the actual sale price at the close will be a range from $14.25 to $14.50 per share. AmericanWest is paying an aggregate $26 million for the bank that was started in 2002 and has four branches.

SBB shareholders gave nearly unanimous approval on the deal after all the absentee ballots were counted, said Paul Rodeno, chief executive at SBB. About 84 percent of the shares outstanding cast votes, he said.

AW, with about $2.3 billion in assets, acquired Sunrise Bank last year taking over its four branches including one in Escondido, setting up at least one branch closure. Rodeno said the bank hasn’t decided which one it will close. All totaled, AW has 70 branches in Washington, California, Utah and Idaho.

The transaction still needs approval from three regulators: the U.S. Federal Reserve Bank, the Federal Deposit Insurance Corp., and Washington state’s Department of Financial Institutions.

Rodeno, who will assume the title of AW’s regional manger for its eight branches, said the bank could be expanding again. “There’s been some discussions going on,” he said, declining to say any more.