Mechanics Bank of Richmond (MCHB)

[Enterprising Investor]

Mechanics Bank and Scott Valley Bank Agree to Merge (2/12/18)

WALNUT CREEK, Calif.--(BUSINESS WIRE)--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.

“The combination of two storied, historic community banks in Northern California is an absolute natural union”

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.

About Mechanics Bank

Mechanics Bank, established in 1905, is an independent, full service community bank. With more than $5.6 billion in assets, it is the largest bank headquartered in Northern California’s East Bay region. With 35 branch offices throughout Northern and Southern California it provides a highly personalized relationship banking experience that includes consumer and business banking services, commercial lending, commercial deposit and cash management services, and comprehensive trust, wealth management and private banking services. More information may be found at www.mechanicsbank.com.

About Scott Valley Bank

Scott Valley Bank is the oldest independent community bank in California and draws upon 160 years of experience in servicing its communities and delivering meaningful and effective financial solutions to its customers in California and Oregon. Scott Valley Bank has nine branch offices serving Northern California, located in San Jose, Walnut Creek, Redding, Mount Shasta, Weed, Yreka, Fort Jones, Etna and Happy Camp, as well as business banking branches in Medford and Portland, Oregon.

https://www.businesswire.com/news/home/20180212006438/en/Mechanics-Bank-Scott-Valley-Bank-Agree-Merge