Officials of locally based Coronado First Bank and Embarcadero Bank announced March 22 that they have signed a definitive agreement to merge the two financial institutions.
In a joint statement, Coronado First Chairman Barbara DeMichele and Embarcadero Bank Chairman Jerry Suppa said the merger will benefit both community banks and their investors, through cost savings resulting from “the elimination of redundant operations.”
The bank leaders said the merger will give Coronado First an infusion of at least $17 million of additional capital, and provide Embarcadero with an expanded customer and deposit base.
Officials said the combined bank will operate under the name Coronado First Bank, with headquarters in Coronado.
Terms call for Coronado First shareholders to receive tangible book value, currently $6.70 per share, or the equivalent of approximately 67 percent of one share of the combined bank for each share of Coronado First stock held at the close of the transaction.
Officials said the combined bank is expected to have equity capital of approximately $25 million, exceeding current regulatory guidelines for well-capitalized institutions. The merger is subject to approval by the Federal Deposit Insurance Corp., the California Department of Financial Institutions, and shareholders of both banks.
DeMichele will serve as board chairman of the combined bank. Maria Kunac, currently president and chief executive officer of Embarcadero, will be the combined bank’s president and CEO.
Bruce Ives, currently president and CEO of Coronado First, will be the combined bank’s chief operating officer, the statement said.
Coronado First was founded in 2005 and reported assets of $83 million at the end of 2010. Embarcadero Bank was founded in 2006 and reported assets of $73 million.
The combined bank will have total deposits of approximately $118 million and total loans of approximately $120 million.
Coronado First is headquartered in Coronado and also has a downtown San Diego office, while Embarcadero Bank has one office in downtown San Diego.
— Lou Hirsh