Mechanics Bank (“Mechanics”) (OTCBB: MCHB) and Learner Financial Corporation (“Learner Financial”), the bank holding company for Scott Valley Bank, today announced that they have reached a definitive agreement for Mechanics to acquire Learner Financial and its wholly owned subsidiary, Scott Valley Bank. The transaction has been approved by the Boards of Directors of Mechanics, Learner Financial and Scott Valley Bank.
Headquartered in Yreka, California, Scott Valley Bank is a business-focused community bank with approximately 113 employees and eleven regional commercial banking locations in Northern California and Oregon. As of December 31, 2017, Scott Valley Bank had approximately $692 million in total assets.
“This is a great combination. It’s incredibly rare to find a business partner that shares a similar history, culture and set of values,” commented John DeCero, President and CEO of Mechanics Bank. “Both Mechanics Bank and Scott Valley Bank have proud community banking traditions over 100 years strong. We believe this merger will offer customers and employees of both banks even greater strength and resources while maintaining our commitments to the communities we serve.”
“The combination of two storied, historic community banks in Northern California is an absolute natural union,” said Craig Van Selow, President and CEO of Scott Valley Bank. “Mechanics Bank offers our clients and our employees deeper resources and broader opportunities to continue the legacy of service to our communities and to reinforce our growth. We could not have hoped for a partner with a better understanding and appreciation of what hand-crafted banking really means.”
Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory approvals. The transaction is expected to close during the second or third quarter of 2018. Clients of both banks should continue to do business with their current bankers and expect little to change as Scott Valley Bank is integrated with Mechanics.
Keefe, Bruyette & Woods, Inc. acted as financial advisor to Learner Financial, and Sheppard, Mullin, Richter & Hampton LLP acted as legal advisor. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mechanics.