Southern California Bancorp Announces Sale of Three Branches to Friendly Hills Bank

Rhea-AI Summary

Southern California Bancorp (OTC Pink: BCAL) and Friendly Hills Bank (OTCBB: FHLB) announced a definitive agreement for the acquisition of three Bank of Southern California branches located in Orange, Redlands, and Santa Fe Springs, California. This strategic move aligns with the banks' commercial banking model, accommodating a consumer-focused approach. The transaction awaits shareholder and regulatory approvals, with an anticipated close in Q3 2021. D.A. Davidson & Co. and Piper Sandler & Co. acted as financial advisors for the respective banks.

Positive

• The acquisition aligns the branch network to better serve consumer and small business banking needs.
• Friendly Hills Bank aims to enhance its service offerings through the integration of new clients and employees.

Negative

• None.

Southern California Bancorp (OTC Pink: BCAL), the holding company for Bank of Southern California, N.A., and Friendly Hills Bank (OTCBB: FHLB) jointly announce the signing of a definitive agreement whereby Friendly Hills Bank will acquire three Bank of Southern California branches. The branches are located in Orange, Redlands and Santa Fe Springs, California.

“This transaction represents our disciplined approach to aligning our branch network to support our evolving commercial banking model,” said Nathan Rogge, President and Chief Executive Officer of Bank of Southern California. “These three branches are more aligned to serve a consumer or small business banking model, rather than a commercial banking model. We thoughtfully executed the sale of these branches and are pleased to have found the right partner for our customers and employees in Friendly Hills Bank, a local community bank.”

“These offices and the communities which they serve are a strong fit with our local community bank model,” said Jeffrey K. Ball, Chief Executive Officer of Friendly Hills Bank. “This transaction provides us with an opportunity to extend our quality service model for relationship-based banking and payroll processing services. We are excited to welcome these new clients and employees to the Friendly Hills Bank family.”

The transaction is subject to shareholder and regulatory approvals and satisfaction of customary closing conditions and is expected to close in the third quarter of 2021.

D.A. Davidson & Co. served as financial advisor and Duane Morris LLP served as legal counsel to Bank of Southern California. Piper Sandler & Co. served as financial advisor and Manatt, Phelps & Phillips, LLP served as legal counsel for Friendly Hills Bank.

ABOUT BANK OF SOUTHERN CALIFORNIA AND SOUTHERN CALIFORNIA BANCORP

A growing commercial bank, established in 2001, Bank of Southern California, N.A., with headquarters in San Diego, CA, offers a range of financial products to individuals, professionals, and small-to-medium sized businesses. The Bank's solution-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. The Bank currently operates branches in San Diego County, Los Angeles County, Orange County, San Bernardino County, and the Coachella Valley in Riverside County.

Southern California Bancorp is a registered bank holding company formed for the purpose of acquiring control of the Bank. The Bank became a wholly owned subsidiary of Bancorp in a reorganization transaction that closed on May 15, 2020.

For more information, please visit https://www.banksocal.com or call (844) BNK-SOCAL.

ABOUT FRIENDLY HILLS BANK

Friendly Hills Bank is a community bank which was formed to primarily serve the Southern California communities of eastern Los Angeles County and northern Orange County. The Bank was established in 2006 by prominent members of the local community who were seeking an alternative to the larger financial institutions in the area. The Bank is headquartered in Whittier, California with an additional branch office in Santa Fe Springs, California.

For more information on the Bank, please visit www.friendlyhillsbank.com or call 562-947-1920.

FORWARD-LOOKING STATEMENTS

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and Southern California Bancorp, Bank of Southern California and Friendly Hills Bank (the “Companies”) intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Companies’ ability to successfully execute their business plans and achieve their objectives; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Companies conduct their operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Companies’ operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Companies undertake no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210419005122/en/

FAQ

What is the significance of the acquisition between Southern California Bancorp and Friendly Hills Bank?

The acquisition is significant as it realigns Southern California Bancorp's branch network to better support a consumer banking model, which may enhance operational efficiency and customer service.

When is the acquisition of the Bank of Southern California branches expected to close?

The acquisition is expected to close in the third quarter of 2021, pending shareholder and regulatory approvals.

What branches are being acquired by Friendly Hills Bank?

Friendly Hills Bank will acquire three branches located in Orange, Redlands, and Santa Fe Springs, California.

Who advised Southern California Bancorp during the acquisition process?

D.A. Davidson & Co. served as the financial advisor to Southern California Bancorp during the acquisition.

Who is the CEO of Friendly Hills Bank?

Jeffrey K. Ball is the Chief Executive Officer of Friendly Hills Bank.