Rabobank, part of Netherlands-based Rabobank Group, has acquired all deposits and certain assets and liabilities of California-based Butte Community Bank and Pacific State Bank from the Federal Deposit Insurance Corporation (FDIC), effective immediately.
The acquisition is part of Rabobank’s growth strategy combining community banks with similar business lines and little geographic overlap.
The acquisition will expand Rabobank’s presence, creating a 120-branch retail banking franchise.
Butte Community Bank was a $499m community bank based in Chico with 14 branches concentrated in Butte County and the surrounding counties.
Pacific State Bank was a $312m community bank based in Stockton with 9 branches primarily in San Joaquin County and the Sierra foothills, with an additional branch in the Bay area.
The customers of the Butte Community Bank and Pacific State Bank can continue to conduct their banking as they have in the past. Butte Community Bank and Pacific State Bank deposits are now deposits with Rabobank.
Rabobank CEO Ronald Blok said that by combining the franchises, the bank will be able to offer customers increased convenience with a more extensive network of branches and ATMs, and able to provide Rabobank banking products and services to a broader range of clients.
“This is a great opportunity for us to deepen our existing customer and community relationships and to build new ones through continued investments that enhance our customers’ experience,” Blok said.
The acquired banks’ branches will be operated by Rabobank, and will be rebranded with the Rabobank name and logo. Rabobank expects to complete the integration by the next year.