IRVINE, Calif. -- The Carpenter Community BancFund announced today that it had entered into a definitive agreement with Irvine-based Plaza Bank, pursuant to which the Fund will invest $15 million in capital into the Bank in return for newly-issued common stock and warrants. The investment and the agreement are subject to the receipt of all appropriate regulatory approvals.
Upon completion of the investment, the Fund will acquire a majority interest in the common stock of the Bank, as well as three seats on its board of directors. The agreement states that the Fund's investment is contingent on implementation of growth initiatives for the Bank's existing product and service lines, and includes the appointment of both of a new chief executive officer and a new president for the Bank, subject to receipt of all necessary regulatory approvals.
Following and subject to all required regulatory approvals and the closing of the transaction, Mr. Gene Galloway will be appointed to serve as the new chief executive officer of the Bank, and Mr. Robert Forsythe will become its new president.
Mr. Galloway is a career California banker, with a long professional history in regional banking at such institutions as California Federal Bank, Crocker National Bank, and Sanwa Bank California. He completed his tenure at Sanwa as Corporate Executive Vice President and Chief of the Retail and Community Banking Group, with responsibility for over $3.5 billion in banking assets and liabilities in 118 branch banking offices.
Mr. Forsythe most recently served as Chief Operating Officer of the Small Business Finance Unit of Lehman Brothers Bank, where he oversaw a staff of 400 employees who originated and serviced over $5 billion in credits to small businesses.
The agreement was unanimously approved by the Bank's board of directors and the Fund's investment committee. Both the Fund and the Bank intend that the investment will be made with a view toward safe and sound revenue growth and resultant increased shareholder value from implementation of the Bank's existing business banking plan.
"Irvine is our home city, and we are delighted to make a significant investment in an Orange County-based commercial bank," said Edward Carpenter, chairman of the Fund's general partner. "We have high hopes for this strong business banking team in meeting the needs of clients in today's changing banking environment."
"Plaza Bank offers opportunities for revenue production by expanding its products and services aimed specifically to the small business community," said Howard Gould, vice chairman of the general partner of the Fund.
"For the most part, the Bank's operating infrastructure is already in place," Mr. Gould noted. "An infusion of capital will help the bank grow its customer base. We hope that our firm's lengthy record of success in advising community banks will allow us to act as a resource for its senior leadership team."
Completion of the investment is anticipated prior to the end of the year, subject to all necessary regulatory and other approvals.
This news release contains forward-looking statements with respect to the financial condition, results of operation and business of Plaza Bank. These include, but are not limited to, statements that relate to or are dependent on estimates or assumptions relating to the prospects of loan growth, credit quality and certain operating efficiencies resulting from the operations of the Bank. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressure among financial services companies increases significantly; (2) changes in the interest rate environment reduce interest margins; (3) general economic conditions, internationally, nationally or in the State of California are less favorable than expected; and (4) legislation or regulatory requirements or changes adversely affect the business in which the Bank will be engaged.
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