BayCom, the holding company for United Business Bank (UBB), has agreed to acquire TIG Bancorp, the holding company for First State Bank of Colorado, in a cash and stock deal worth about $39.4m (£31.2m).
Image: BayCom to acquire TIG Bancorp. Photo: Courtesy of Capri23auto/Pixabay
BayCom has offered $12.37 (£9.8) per share for TIG. As of 31 March 2019, TIG had $229m (£181.3m) in assets, $146.2m (£115.7m) in loans, $198.4m (£157.1m) in deposits and $29.5m (£23.3m) in shareholder’s equity.
Pursuant to the agreement, TIG and its subsidiaries will be merged with and into BayCom and First State Bank of Colorado will be merged into UBB.
Upon closing of the deal, TIG shareholders will receive $6.34 (£5.02) in cash and 0.27543 shares in BayCom for each share of TIG.
With the acquisition, the combined company will have total assets amounting to nearly $2bn (£1.6bn), $1.4bn (£1.1bn) in total loans and $1.8bn (£1.4bn) in total deposits. UBB will have 20 locations in California, two in Washington, six in New Mexico and seven in Colorado.
TIG board chairman Gary Webb said: “I am confident that the merger will result in a continuation of the friendly and professional services that our valued customers have grown accustomed to and will be of great benefit to our communities.
“On behalf of the Board, I wish to express our sincere appreciation to the community’s support of First State Bank of Colorado, our shareholders, our exceptional staff, our loyal customers, and our President and CEO Jeffrey Walker for their contributions toward making this enterprise a true community bank.”
The deal is expected to be closed in the fourth quarter of this year, subject to customary closing conditions including regulatory approval and approval from the shareholders of TIG.
BayCom president and CEO George Guarini said: “At the end of the day, our business is only as good as our people and we are looking forward to having the First State Bank of Colorado team join the United Business Bank family.
“Jeffrey Walker and his team built a solid franchise and we are pleased that Jeffrey will join us as President of the Colorado Division of United Business Bank.
“We are very excited to have the opportunity to enter the Colorado market setting the stage for taking advantage of additional partner opportunities available in the state. We look forward to serving First State Bank of Colorado’s clients and welcoming the shareholders of TIG.”
First State Bank of Colorado caters to its clients in the state through its Denver Tech Center Branch in Arapahoe County, its Fountain Branch in El Paso County, its Westcliffe Branch in Custer County and its four branches in the communities of Crawford, Delta, Hotchkiss and Paonia all in Delta County.