Grandpoint Capital Inc. and Bank Capital Corp., the parent of Biltmore Bank of Arizona, said they have signed a definitive merger agreement.
Grandpoint, a fast-growing Los Angeles bank holding company, said late Tuesday that Biltmore Bank of Arizona will become one of its wholly owned subsidiaries. Biltmore Bank was founded in 2003 and has offices in Phoenix and Scottsdale. At the end of last year, it had total assets of $261 million.
Pending regulatory and shareholder approvals, the deal is expected to close in the second quarter. Biltmore Bank will continue to operate under its existing name with current management and staff, the companies said.
“The events of the past several years have illustrated that in order for us to support the continued growth of our current clients we need to have a strong balance sheet and a formidable capital position,” said Bank Capital Chairman Richard J. Lehmann in a statement. “The affiliation with Grandpoint is an excellent fit for us because we have a common business focus and operating philosophy, and Grandpoint’s substantial capital base will enable us to accelerate our growth and expand our banking capabilities, which will benefit our clients.”
This is Grandpoint’s second acquisition this year. Last month it announced a deal to expand its presence in San Diego County by acquiring California Community Bank of Escondido for more than $30 million.
Grandpoint Capital now has three wholly owned subsidiaries: Grandpoint Bank, Regents Bank N.A. and Peoria Holdings LLC., and it is a majority owner of the Bank of Tucson. As of Tuesday, it had total assets of approximately $1.5 billion.
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