Embarcadero Bank, one of the area’s smallest with about $80 million in assets, received regulatory approvals from state and federal agencies to complete its acquisition of Coronado First Bank, the buyer announced Nov. 1.
The sale that was announced in March hit opposition out of the gate from unhappy Coronado First investors, forcing Embarcadero to sweeten the deal by $300,000 before the seller’s shareholders gave their OK in August.
Among other concessions are excluding Coronado First’s chief executive, Bruce Ives, from a job at the new bank and electing four new directors representing CFB’s investors to the bank’s new board.
The new bank will be known as Coronado First and maintain that bank’s current headquarters on the island. Embarcadero’s chief executive, Maria Kunac, will head up operations and its chairman will be Jerry Suppa of Embarcadero.
Total assets will be about $160 million, making it 16th largest among local lenders.
The two banks still need to wait until there are no objections in connection with federal antitrust laws. Assuming that condition is met, the banks should complete the combination by Nov. 15, says Kunac.
Once consolidation of systems begins in January, Embarcadero will give up its downtown office on West A Street.
In its last quarterly report as a stand-alone entity, Coronado First said it sustained a third-quarter net loss of $74,000, and a nine-month net loss of $841,000. In addition to losses attributed to problem loans, the sellers spent $315,000 on expenses in connection with the sale.
— Mike Allen