Shareholders of Coronado First Bank overwhelmingly approved the sale of the struggling bank to Embarcadero Bank on Aug. 23 for about $9 million in a stock and cash deal that looked like it was on the rocks several weeks ago.
The actual sales price for Coronado First is based on the bank’s book value as of Sept. 30. The deal that still requires approval from federal and state bank regulators is expected to close sometime in the fourth quarter.
Shareholders of the acquired bank balked at approving Embarcadero’s initial offer of $6.70 per share at a June meeting, forcing the buyers to sweeten the deal by $300,000. The new deal excludes Bruce Ives, chief executive of Coronado First, and all the current CFB board of directors from the newly merged bank.
CFB shareholders approved four new directors for the newly constituted bank board: Pete Davis, Dan Payne, Whitney Benzian and David Engleman.
The new bank, which will adopt the Coronado First name, is headed by Embarcadero’s current CEO, Maria Kunac, and will be about $156 million in assets, making it the 15th largest bank in the county.
— Mike Allen