Bay Area Bank to Acquire Covina Bank

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AltaPacific Bancorp and Covina’s Stellar Business Bank have signed a definitive agreement to merge in a stock deal valued at $17.4 million.

The Santa Rosa parent of AltaPacific Bank will acquire all outstanding common shares of Stellar Business Bank, and the operations of Stellar will merge into AltaPacific. Stellar shareholders will receive 0.8443 shares of AltaPacific common stock for each share of Stellar common stock.

AltaPacific has branches in Santa Rosa and Rancho Cucamonga. Stellar Business Bank operates one branch in Covina. The combined company will have about $190 million in assets and $127 million in deposits, the banks said.

“We are fortunate to find such a great partner to help us continue with the growth of our business,” said AltaPacific Chief Executive Charles O. Hall in a statement. “Stellar has adopted a similar business strategy and they recognize the strength that will be created by putting our two banks together.”

The merger, expected to be completed in the fourth quarter, is subject to regulatory and shareholder approvals. Upon completion of the deal, Stellar Chief Executive Timothy P. Walbridge and Chairman Rich Jett will join AltaPacific’s board. Walbridge also will join the leadership team of AltaPacific Bank.

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