Two massive banks in California are now merging in a $233.6 million deal, which is expected to close during the third quarter of 2024.
Southern California Bancorp and California BanCorp plan to merge in an all-stock transaction valued at roughly $233.6 million, the banks announced Tuesday.
Southern California Bancorp’s Chairman and CEO David Rainer will serve as executive chairman of the combined company.
California BanCorp CEO Steven Shelton, meanwhile, will serve as chief executive of the combined company and the combined bank, Banking Dive reports.
Billed as a “merger of equals,” the deal will create a $4.6 billion-asset company with a presence in some of California’s strongest areas for mid-market business banking.
“The expanded scale and capabilities we will have as a result of this merger will enhance our ability to continue adding attractive full banking relationships with commercial clients that provide operating deposit accounts and high quality lending opportunities, as well as enabling us to move up market and work with larger businesses,” Steven Shelton, CEO of California BanCorp, said in a press release Tuesday.
At deal completion, Southern California Bancorp shareholders will own approximately 57% of the outstanding shares of the combined company, and California BanCorp shareholders will own about 43%.
California BanCorp Chairman Stephen Cortese said the company, over the past several years, has invested in talent and technology that strengthened the franchise and led to growth in its client base, increased efficiencies and improved profitability.
“This merger will accelerate the growth of our franchise and further improve our ability to create long-term value for shareholders,” Cortese said in Tuesday’s release.
The companies will evaluate rebranding with new names and logos at the close of the transaction, they said.
Corporate headquarters will be in San Diego.
Also Read: Three Massive Banks Are Now Closing Branches in Pennsylvania
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A US bank is now abruptly freezing accounts and money after a customer reported an incident involving a check deposit.
A Chase customer is reporting the bank froze their account and advised their funds would be on hold for 2-3 years while they ‘verify’ a check.
Going by the name Nooj, they explained on Reddit that they had deposited a check from their uncle and saw their account was frozen the next.
Nooj called Chase and was told the entire account was locked due to check holds, and they were advised to call back in a week to resolve the matter.
But when the time came, Nooj was told the bank account was still frozen and that they would have to once again call back for an update.
Unfortunately, on the third phone call to Chase, they were told the account would be closed in just four days if the matter wasn’t resolved, reports The-Sun.
“During the attempt to verify the check, I was informed that there was no associated phone number for my uncle in the Chase system, rendering verification impossible,” Nooj said.
“I discovered that the funds would be held for two to three years and, if not verified, sent to the state.
Despite my pleas, the representative provided no steps for verification and claimed there was nothing they could do.”
They said they were never informed that the check had to be verified until after the account was frozen and that Chase waited until after the check cleared to notify them that it would be held.
Nooj said they gave Chase their uncle’s phone number, but the bank said it wasn’t verified in its system.
“I now face months without access to my funds, causing significant stress, inconvenience, and financial hardship.
The lack of transparency in this process is deeply concerning,” they said.
“I have made upward of 20 calls, visited the branch, and filed a complaint with the CFPB in an attempt to find a path to verify the check.
“Every response I receive is that there is nothing they can do, and until they have a verified number for my uncle, they will continue to hold the funds. (Though they can’t tell me how to get his number verified).”
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Also Read: A US Bank is Now Denying Customers Access to Money
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