Sterling Financial Corp., the Spokane-based parent of Sterling Bank, announced this morning it has agreed to acquire Newport Beach, Calif.-based Commerce National Bank in a transaction valued at $42.9 million.
The transaction is expected to be completed during the third quarter of this year. Sterling Financial said in a press release the boards for both Sterling and the California bank have approved the transaction, and it remains subject to approval by Commerce National Bank shareholders and bank regulatory agencies.
Commerce National Bank specializes in business banking, including U.S. Small Business Administration lending and equipment leasing. As of March 31, the company had $242.7 million in total assets, $211.4 million in deposits, and $146.3 million in loans.
David DePillo, chief lending officer at Sterling, said in the release that CNB complements the Spokane bank's current operations in Orange County. In addition, he said, "CNB also brings us a scaleable equipment leasing business that fills a void in our current commercial product set."
In the first quarter, Sterling completed its acquisition of La Mesa, Calif.-based American Heritage Holdings, parent company of Borrego Springs Bank. The acquisition added $103.7 million in gross loans and $117.7 million in deposits to Sterling, which had $6.5 billion in total loan balances and $6.6 billion in total deposits as of March 31.
Sterling currently has 12 branches in the Spokane-Coeur d'Alene area.