SAN JOSE, Calif.–(GLOBE NEWSWIRE)–Heritage Commerce Corp (Nasdaq:HTBK), the parent company of Heritage Bank of Commerce (“Heritage”), and Focus Business Bank (OTCQB:FCSB) (“Focus”) today jointly announced the execution of a definitive agreement and plan of merger and reorganization (the “Agreement”) whereby Focus will merge into Heritage in a transaction valued at approximately $54.8 million. The transaction combines two of the leading commercial banking franchises in San Jose, California with more than $2 billion in combined assets.
The board of directors of both companies approved the transaction, which is subject to customary conditions, including the approvals of bank regulatory agencies and the shareholders of HTBK and Focus. Upon completion of the transaction, the HTBK Board of Directors will consist of 13 directors, eleven representatives from HTBK and two representatives from Focus. Shareholders of Focus will receive a fixed exchange ratio at closing of 1.8235 shares of HTBK common stock for each share of Focus common stock. Based on the HTBK stock price as of the close of the market on April 22, 2015, total consideration for each Focus share would be $16.41.
“We are excited about this opportunity to combine two fine independent business banking franchises with similar philosophies and cultures into a combined $2 billion business bank based in San Jose. The pooling of our resources and knowledge will enhance our capabilities, operational efficiencies, and community outreach. We believe it will be a win-win merger for customers, shareholders and the community. We expect the merger to close before the end of the year and be accretive to earnings in 2016,” stated Walter Kaczmarek, the Chief Executive Officer of HTBK.