BayCom has agreed to acquire Bethlehem Financial (BFC), the parent company of MyBank, for $23.5m in cash.
The two companies have signed an agreement for plan of merger, under which, BayCom will be acquiring Bethleham Financial’s shares for $62 each.
BayCom is the holding company for United Business Bank’s (UBB).
The transaction is expected to be closed in the fourth quarter of this year, subject to customary conditions including regulatory approval and approval from shareholders of BFC.
BFC president and CEO R. Edward Robertson said: “We are very happy to join BayCom and believe our combination with United Business Bank will provide significant value to our shareholders, clients and employees. We also believe this is a natural fit which increases lending capabilities, expands capital resources and provides a more expansive product offering to the central New Mexico business community.”
After the transaction is completed, MyBank will be merged into UBB. BayCom says that the transaction could be accretive to earnings in the first year of combined operations and accretive to tangible book value in about three years.
Through the acquisition, BFC is expected to expand its presence in the Albuquerque metropolitan area and provide entry into nearby communities.
MyBank serves central New Mexico through five branches operating in Belen, Rio Communities, Los Lunas, Albuquerque, and Mountainair, New Mexico.
After the transaction is completed, the combined company will have total assets worth $1.5bn, $933m in total loans and $1.3bn in total deposits. UBB will have 14 locations in California, two in Washington, and six on New Mexico.
By the end of June this year, BFC had about $156.6m in assets, $79.4m in loans, $136.2m in deposits and $16.1m in stockholder’s equity.
United Business Bank president and CEO George Guarini said: “Ed Robertson and his team built a solid franchise that we believe we can leverage with additional products, capital, and increased lending limits. We look forward to serving MyBank’s clients.”
“From a strategic perspective, this is a great fit. As a result, the transaction will provide United Business Bank with a significant presence in central New Mexico, expanding the breadth of our footprint and providing entry into several new markets. We look forward to the prospects of establishing new relationships, enhancing our position in the market and building on an already strong foundation.”