SC Bancorp Announces Major Acquisition in Orange County

In a significant move, SC Bancorp, the parent company of Southern California Bank, has signed a definitive agreement to acquire the Corporate and Private Banking Division of Independence One Bank of California F.S.B. The acquisition involves the purchase of $85 million in commercial loans and the assumption of $30 million in deposit accounts. The deal is subject to regulatory approvals and is expected to result in two additional branch locations for Southern California Bank.

Key Takeaways:

• SC Bancorp will purchase substantially all of the Corporate and Private Banking Division of Independence One Bank of California F.S.B. for approximately $85 million in commercial loans and $30 million in deposit accounts.
• The acquisition is subject to final regulatory approvals by the FDIC and the California State Banking Department.
• The purchase will add two new branch locations for Southern California Bank, in Laguna Hills and San Diego.
• The acquisition is expected to improve SC Bancorp's loan-to-deposit ratio to approximately 70 percent, with only a modest increase in operating expenses.
• Management estimates that the acquisition could add earnings of up to 20 cents per share on an annualized basis.
• The acquisition is in line with SC Bancorp's corporate strategy and specializes in business and personal banking activities.

Statistics:

• The acquisition involves the purchase of $85 million in commercial loans.
• The acquisition involves the assumption of $30 million in deposit accounts.
• The purchase will improve SC Bancorp's loan-to-deposit ratio to approximately 70 percent.
• Management estimates that the acquisition could add earnings of up to 20 cents per share on an annualized basis.
• Southern California Bank has total assets of $405 million.

Sources:

• Business Wire, "SC Bancorp Announces Major Acquisition in Orange County" (January 19, 1995)
• SC Bancorp press release (no date specified)