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Thursday, Mar 28, 2024
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Local Bank to Get New Money and New Mission With Acquisition

Seacoast Commerce Bank is poised to have more deposits than any other locally based bank once its planned acquisition of San Juan Capistrano-based Capital Bank closes in the fourth quarter.

La Jolla-based Silvergate Bank’s deposit base – just shy of $769 million as of March 31, according to the latest data available from the Federal Deposit Insurance Corp. – is larger than any other bank based in the county. (That excludes BofI Federal Bank, the internet bank also headquartered in La Jolla, which does most of its business outside of the region.)

Richard Sanborn

But the Federal Reserve recently OK’d the acquisition of Capital Bank by Seacoast Commerce Banc Holdings, the parent company of San Diego-based Seacoast Commerce Bank, and CEO Richard M. Sanborn said this week the previously announced plan to finalize the acquisition in the fourth quarter is on track.

Once the banks are a combined institution, its deposits will top $784 million, according to FDIC data.

The bank’s next move is to get approval from California’s Department of Business Oversight, which oversees the operations of state-licensed financial institutions. After regulators OK the deal, shareholders will vote on the merger.

The institutions’ joining heralds a shift in business strategy for Seacoast, which reinvented itself as a U.S. Small Business Administration lender about a decade ago when Sanborn joined the bank.

“While we have primarily been focused on the SBA real estate lending market for many years now, we have always looked for complimentary institutions that also have an expertise in some specialized area or areas, as we do strongly believe that specialization is a key factor in becoming a high-performing institution,” he said in the statement announcing the acquisition agreement. “After looking at, evaluating, and dating many other community banks, this is clearly ‘the one’.”

Capital Bank specializes in providing loans to small and middle-market businesses and individuals.

The combined institution will have four full-service branches in San Diego and Orange County and 13 loan production offices in seven Western states.

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