California Bank, a division of Zions Bancorporation, entered into an agreement to acquire four branch locations in Palm Desert and Indio from FirstBank, headquartered in Lakewood, Colorado. Under the agreement, California Bank will acquire approximately $730 million in deposits and $420 million in loans.
Upon completion, the branch acquisition will expand California Bank’s physical presence in Coachella Valley to a total of six locations and will add approximately 15,000 new customers, resulting in a combined 7% market share in Coachella Valley. As part of the agreement, California Bank will welcome the California-based FirstBank employees to its existing team of more than 900 associates.
“This transaction provides us a team of accomplished banking professionals, four attractive and well-located branches, a sizable customer base and a great deposit franchise,” Eric Ellingsen, president and CEO of California Bank, said. “We are excited to welcome our new colleagues and customers to California Bank & Trust and to further build upon our strong relationships in Coachella Valley.”
This transaction is expected to be completed in Q1/25, subject to customary closing conditions and regulatory approval. The branches to be acquired will continue to operate as FirstBank branches until completion of the deal, at which time they will immediately re-brand as California Bank.
“Our largest priorities are not only working with CB&T to ensure a smooth transition, but taking care of our clients and team members as we work through this change,” Kevin Classen, CEO of FirstBank, said. “We intend to also maintain the highest standards of customer service and support throughout the process.”
“We’re working in partnership with FirstBank to handle every account with care,” Ellingsen said. “The FirstBank customers we will be welcoming to California Bank & Trust can expect to work with familiar faces supported by a company committed to building the best banking relationships in California.”
Morgan Stanley is serving as financial advisor to FirstBank on the transaction.
