StockLogistics
3 years ago
CORPORATE STRUCTURE
2011 TCRT
Holding Company
FORD ULTIMATE MANAGEMENT II, LLC
Holding Company
0%
FORD MANAGEMENT III, L.P.
Holding Company
0%
FORD MANAGEMENT II, L.P.
Holding Company
0%
FORD MANAGEMENT III, L.P.
Holding Company
0%
FORD FINANCIAL FUND III, L.P.
Holding Company
0%
FORD FAMILY INVESTMENT, LP
Holding Company
0%
FORD FINANCIAL FUND II, L.P.
Holding Company
0%
FORD MANAGEMENT II, L.P.
Holding Company
0%
FORD FINANCIAL FUND II, L.P.
Holding Company
0%
GJF FINANCIAL MANAGEMENT II, LLC
Holding Company
0%
VIEW CORPORATE STRUCTURE DIAGRAM
FINANCIAL REPORTING
Reporting Status
U.S. Reporting: Bank/Thrift
Audited Financials
Audited
Latest Report
Not Available
CIK
0001048167
Fiscal Year End
12/31
COMPANY OFFICERS & CONTACTS
Steven K. Buster
President, CEO
BOARD OF DIRECTORS
E.M. Downer, III
Chairman
OTHER COMPANY INSIDERS
Not available
Other Company Insiders are all persons or entities beneficially owning 10% or more of any class of the issuer's securities. Together, officers, directors and other company insiders comprise Company Insiders.
SERVICE PROVIDERS
Not available
PROFILE DATA
SIC - Industry Classification
6022 - State commercial banks
Incorporation Information
USA
Employees
Not Available
Shell
No
Bank / Thrift
Yes
PRODUCTS AND SERVICES
Not available
COMPANY FACILITIES
Not available
Enterprising Investor
7 years ago
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
Enterprising Investor
7 years ago
Mechanics Bank Recognized for Going “Beyond the Check” (7/24/17)
San Francisco Business Times award honors Richmond Housing Rehab Program
WALNUT CREEK, Calif.--(BUSINESS WIRE)--An innovative program that renovates abandoned and blighted homes and provides affordable housing in Richmond, California, has won recognition for Mechanics Bank’s role in providing financing through the purchase of Social Impact Bonds (SIBs). The “Beyond the Check” award presented yesterday as part of the San Francisco Business Times’ Corporate Philanthropy Awards was one of just five given to Bay Area companies that “go to great lengths to share time and talent with nonprofits.”
Mechanics Bank teamed up with the Richmond Community Foundation (RCF), which runs the program, not only to purchase the entire $3 million bond issue that launched it, but to provide ongoing community relations and marketing support. Mechanics Bank also provided even better terms than proposed; the bonds are at zero percent interest, no coupon and funds are recycled for five years, as homes are sold, to allow more homes to be purchased and renovated.
“As a community foundation working with a community bank, this has been a perfect match of mission, vision and values,” said Jim Becker, CEO of RCF. “We couldn’t ask for a better partner than Mechanics Bank.”
“When we were offered the chance to participate in this effort, we jumped at it,” said Rauly Butler, Mechanics Bank Executive Vice President and Director of Retail Banking. “When our communities thrive, we thrive. That has been part of our business model for well over a century.”
Everything about the RCF program is designed to benefit the community. All workers hired to rehab the properties live in Richmond, so the project has pumped $150,000 in wages back into the local economy. To date, 17 homes have been purchased and two homes sold. (Becker thinks as many as 300 homes in Richmond might be suitable for this program.) RCF also partners with SparkPoint, a financial education nonprofit whose clients get a 10-day non-compete window to purchase homes that RCF puts on the market, giving these first-time home buyers an edge in the heated Bay Area real estate market.
“Mechanics Bank has perennially made the list of top corporate philanthropists; this year we were 50th out of 100 Bay Area corporations and one of a select few in the ‘1% club,’” said John DeCero, CEO of Mechanics Bank. “This is what community banking is all about; providing the communities we serve with the resources they need to succeed.”
Video about the program can be found here:
https://www.bizjournals.com/sanfrancisco/news/2017/07/19/corporate-philanthropy-beyond-check-mechanics-bank.html
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 30 branch offices throughout Northern California and five locations in 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 and wealth management services. More information may be found at www.mechanicsbank.com.
http://www.businesswire.com/news/home/20170724006143/en/Mechanics-Bank-Recognized-%E2%80%9CBeyond-Check%E2%80%9D
Enterprising Investor
8 years ago
Mechanics Bank Grows Napa Team (1/27/17)
Experienced lenders add wine industry, food processing and agricultural depth
NAPA, Calif.--(BUSINESS WIRE)--Please replace the release dated January 26, 2017, with the following corrected version due to multiple revisions.
Mechanics Bank has added Samantha Foster and Debbie Watson, two experienced food and wine industry finance specialists, to its regional commercial banking team in Napa.
“Both Samantha and Debbie are seasoned bankers who bring tremendous expertise to our team,” says Dan Aguilar, Senior Vice President and Regional Manager, Napa Commercial Banking. “They will help fuel our initiative to expand in one of California’s premier agricultural areas.”
Ms. Foster, who joins Mechanics Bank as Vice President and Senior Relationship Manager, previously held a senior position in the Food and Agriculture Division of Rabobank, NA. Her 25-year career in commercial banking includes four and a half years at Wells Fargo Bank, six years with First Bank in San Francisco and nearly three years at Bank of the West. Ms. Foster will continue to focus on providing financing solutions to innovative, growing food companies as well as wineries and vineyard owners located throughout the North Bay and greater SF Bay Area.
Ms. Watson, who also joins as Vice President, Senior Relationship Manager, was previously Managing Director of First Republic’s Wine Industry Group. Prior to that, she spent nearly a decade with Wells Fargo, and previously held positions with City National Bank, Umpqua and Bank of the West. Her primary focus will be providing financing solutions to wineries and grape growers, as well as other wine industry-related companies.
“Mechanics Bank has been lending in the North Bay for over 65 years, and we know wine, food and agriculture exceptionally well,” Aguilar says. “This is a dynamic region on which Mechanics Bank is strategically focused. As we continue to grow our team in 2017 with talented and experienced professionals, our clients will derive even greater benefits from our high-touch client service model, expertise and innovative financial solutions.”
About Mechanics Bank
Mechanics Bank, established in 1905, is an independent, full service community bank. With more than $5.4 billion in assets, it is the largest bank headquartered in the Bay Area’s East Bay region. Its 30 branch offices throughout Northern California and five locations in Southern California provide a highly-personalized relationship banking experience that includes consumer and business banking services, commercial lending, commercial deposit and cash management services, and comprehensive trust and wealth management services.
Contacts
For Mechanics Bank
Hatti Hamlin, 925-872-4328
hattihamlin@comcast.net
http://www.businesswire.com/news/home/20170126006090/en/CORRECTING%C2%A0and-REPLACING%C2%A0Mechanics-Bank-Grows-Napa-Team
Enterprising Investor
8 years ago
Mechanics Bank Opens New State-of-the-Art Branch at Richmond’s Hilltop Mall (1/09/17)
RICHMOND, Calif.--(BUSINESS WIRE)--With a ribbon cutting at 9 a.m., Mechanics Bank ("MCHB" OTC) will open a new, state-of-the-art branch at Hilltop Mall in Richmond, CA on Monday, January 9th, 2017. It replaces the former Hilltop Office.
“This new branch ushers in a new era for us in Richmond, and embodies our continued commitment to this community,” says Rauly Butler, Mechanics Bank Executive Vice President, and head of Retail Banking.
Located at 3190 Klose Way, the 8,300 square foot building is divided between a 4,000 sq. ft. branch office and a 4,300 sq. ft. community room.
The new branch features a design built around community use and client convenience. In addition to two full-service ATMs, a new self-service coin-counting machine, a self-service online banking portal, WiFi, and a dedicated merchant teller window, it’s one of the few banks in California still offering the convenience of an actual person-to-person drive thru banking window. The drive thru travels into what was once the interior of the building. According to architect Sady Hayashida (Berkeley, CA), this represents a new trend for drive-ups, providing shelter from the weather and greater comfort and convenience for clients.
The E. M. Downer Community Room, named in honor of Mechanics Bank’s long-time president and owner from the Bank’s early years, offers a large meeting and event space, that will be made available to local community organizations and nonprofits on a reservation basis. It offers configurable tables and seating areas, multiple video presentation monitors and white boards, a kitchenette and dedicated rest rooms. While the Community Room is physically part of the branch building, it is an independent space, accessed only from the parking lot.
Branch Manager Jorge Reyes says the Bank has ensured that clients of the prior Hilltop branch will continue to be greeted by the same friendly employees they have come to know.
“This is a significant investment in the Richmond marketplace and shows we are deeply connected to our roots in the City of Richmond, where we began operations over 110 years ago,” says Mechanics Bank President and CEO, John DeCero.
About Mechanics Bank
Mechanics Bank, established in 1905, is an independent, full service community bank. With more than $5.4 billion in assets, it is the largest bank headquartered in the Bay Area’s East Bay region. A national indirect auto lender, its 30 branch offices throughout Northern California and five locations in Southern California provide a highly personalized relationship banking experience that includes consumer and business banking services, commercial lending, commercial deposit and cash management services, and comprehensive trust and wealth management services.
Contacts
For Mechanics Bank
Hatti Hamlin, 925-872-4328
hattihamlin@comcast.net
http://www.businesswire.com/news/home/20170109005330/en/Mechanics-Bank-Opens-State-of-the-Art-Branch-Richmond%E2%80%99s-Hilltop
Enterprising Investor
8 years ago
East Bay Leadership Council Honors Mechanics Bank with Corporate Philanthropy Award (12/01/16)
WALNUT CREEK, Calif.--(BUSINESS WIRE)--Mechanics Bank has received the East Bay Leadership Council’s Corporate Philanthropy Award for its many contributions to East Bay communities. The award was presented at an event at the Blackhawk Museum on Nov. 3, 2016.
“Mechanics Bank’s generosity has been extraordinary,” says Jim Becker, Executive Director of Richmond Community Foundation. “We were honored to nominate them for this award.”
According to Kristin Connelly, President and CEO of the East Bay Leadership Council, "The EBLC was proud to honor Mechanics Bank with a 2016 East Bay Philanthropy Award because their generosity to 260 local nonprofits goes well beyond the dollars and cents. The Bank's work includes financial literacy training integrated into the curriculum of six public high schools and financial education to students in low-income communities. They also work closely with community partners to offer programs like the Individual Development Accounts for those saving to start a business, attend college, or buy their first home.”
The bank also sponsors and sends representatives focused on solving the most pressing problems in the East Bay community to the Northern California Summit on Children and Youth.
Recently, Mechanics Bank stepped up to purchase “Social Impact Bonds” (SIBs) issued by the City of Richmond to support the Richmond Community Foundation’s (RCF) unique program to rehabilitate abandoned homes and provide affordable homeownership in Richmond. SIBs blend private investments and charity to effect social change by providing low-interest loans to nonprofits to fund programs designed to address social issues. Investors only earn a profit if the programs succeed over a period of time, and initial profits are recycled to fund continuing work. Investor profits are capped, and are not guaranteed by taxpayers. In this case, Mechanics Bank is not collecting interest on the bonds.
“Mechanics Bank’s support of our housing rehabilitation program was courageous and has gone far beyond purchasing the bonds,” says Mr. Becker. “Not only did they purchase the bonds to finance this unique program, but they also have supported it with staff involvement throughout our launch. We are deeply grateful to them.”
Rauly Butler, Executive Vice President and Director of Retail Banking at Mechanics Bank, says, “It’s a great honor to be recognized by the East Bay Leadership Council. We truly believe that when communities prosper, we prosper. This is at the heart of true ‘community banking’ and it’s what Mechanics Bank has been doing for 111 years.”
About Mechanics Bank
Mechanics Bank, established in 1905, is an independent, full service community bank. With more than $5.4 billion in assets, it is the largest bank headquartered in the Bay Area’s East Bay region. Its 30 branch offices throughout Northern California and five locations in Southern California provide a highly personalized relationship banking experience that includes consumer and business banking services, commercial lending, commercial deposit and cash management services, and comprehensive trust and wealth management services.
Contacts
For Mechanics Bank
Hatti Hamlin, 925-872-4328
hattihamlin@comcast.net
http://www.businesswire.com/news/home/20161201006489/en/East-Bay-Leadership-Council-Honors-Mechanics-Bank
Enterprising Investor
8 years ago
Mechanics Bank Announces Completion of Merger with California Republic Bancorp and Rights Offering (10/03/16)
WALNUT CREEK, Calif.--(BUSINESS WIRE)--Mechanics Bank (“Mechanics”) today announced the completion of its previously announced strategic merger with California Republic Bancorp (“CRB”) (OTCBB: CRPB), a bank holding company for California Republic Bank, which became effective on October 1, 2016. Pursuant Mechanics Bank, and John DeCero succeeded Ken Russell to become the President and Chief Executive Officer of Mechanics Bank. Ken Russell returns to the Ford Financial Fund, while continuing to serve as a director on the Mechanics Bank’s Board.
Keefe, Bruyette & Woods, Inc. acted as financial advisor to CRB, and Sheppard, Mullin, Richter & Hampton LLP acted as legal advisor to CRB in connection with the merger. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mechanics in connection with the merger and the rights offering.
About Mechanics Bank
Mechanics Bank, established in 1905, is an independent, full service community bank. With more than $3 billion in assets, it is the largest bank headquartered in the Bay Area's East Bay region. Its 30 branch offices throughout Northern California provide a highly personalized relationship banking experience that includes consumer and business banking services, commercial lending, cash management services, and comprehensive trust and wealth management to the terms of the merger, CRB shareholders will receive cash consideration of $37.19 per share. Mechanics also announced today that it has completed its previously announced rights offering. The proceeds from the rights offering were used to help fund the aggregate merger consideration and pay certain fees and expenses related to the merger.
Upon the completion of the merger, John DeCero, formerly the President of CRB, and Jon Wilcox, formerly the Chief Executive Officer of CRB, became members of the Board of Directors of services. The merger with CRB, which became effective on October 1, 2016, added assets of approximately $1.8 billion, as well as five branch offices serving Southern California, located in Newport Beach, Beverly Hills, Irvine, Westlake Village and San Diego. Mechanics Bank will also operate CRB Auto, as a division of Mechanics Bank, which is a relationship based, indirect auto lender, which purchases auto contracts from both franchised and select independent automobile dealerships throughout 14 States—Arizona, California, Colorado, Idaho, Illinois, Iowa, Kansas, Missouri, Nevada, Oklahoma, Oregon, Texas, Utah, and Washington. Mechanics Bank and California Republic Bank are Member FDIC institutions. For more information, go to www.mechanicsbank.com.
http://www.businesswire.com/news/home/20161003006440/en/Mechanics-Bank-Announces-Completion-Merger-California-Republic
Enterprising Investor
8 years ago
Mechanics Bank retools to court the not-so-wealthy (9/01/16)
Mechanics Bank boosted staffing in its wealth management division to reach out to affluent clients who don't meet the industry's more traditional $1 million threshold to qualify for money management services.
Of course when it comes to wealth, all things are relative.
In the case of Mechanics Bank, its new offering targets those with $250,000 to $1 million in cash, stocks, bonds and other so-called liquid assets for a range of trust, investment and estate and retirement planning services.
Once you hit the magic million-dollar mark, there's no shortage of providers eager to manage your money.
Banks are often the first to learn of customers coming into money, but often aren't the first choice when it comes to investment services.
"We're seeing increasing demand from our existing client base," says Deberah Kelley, executive vice president and director of wealth management at Mechanics Bank, (OTC: MCHB) with $3.6 billion in assets.
"This is one of the strongest economic regions in the country, and significant income growth and net worth is resulting in the need for broader financial services," Kelley said.
Mechanics Bank is creating a range of exchange-traded funds, from very conservative to aggressive investment objectives, that will allow the bank to provide investment services to the mass affluent.
Kelley says banks are often considered too conservative, which might be a holdover from yesteryear's regulations and practices.
Kelley, who came to Mechanics Bank after working at Santa Rosa-based Exchange Bank (OTC: EXSR) and Wells Fargo, said Mechanics' mass affluent outreach grew out of meetings with her team of 35 on what opportunities the bank might be missing.
Kelley estimates that 20 percent of Mechanics' retail customers qualify for the bank's investment services for the mass affluent.
"At heart, I like the financial planning aspect of helping clients prepare for retirement, transfer wealth or estate planning," Kelley said. "There's great satisfaction in that."
Mechanics Bank hopes that it can build stronger relationships with the under-$1 million set so that when they do cross the $1 million threshold, the bank has a better chance of holding on to them as clients.
Affluent investors are also being courted by a range of new investment vehicles to put their money to work in startups, small businesses and other investment alternatives beyond stocks and bonds.
Mechanics Bank is adding and promoting staff across its Bay Area franchise to better serve the so-called mass affluent.
Ester Babakhanov joined Mechanics as a vice president and wealth management strategist in the bank's office in San Francisco's Financial District. She previously worked at JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC).
James Hauer is moving from the bank's San Francisco office to the North Berkeley office to meet the growing demand for trust services in Berkeley.
In the Oakland office, Tina Papucci has been promoted to vice president and personal trust manager, and Michael Shea has joined the bank as a vice president and wealth strategist after working at independent wealth management firms.
The mass affluent initiative also includes Darren Peterie serving as a private banker in the Napa office after working in Mechanics' retail banking division and Ron Sparrow, who has been promoted to vice president in private banking in the Walnut Creek office.
http://www.bizjournals.com/sanfrancisco/news/2016/09/01/mechanics-bank-wealth-money-management-mchb.html
Enterprising Investor
8 years ago
New program renovating blighted Richmond properties ‘working as designed’ (8/03/16)
An innovative new program in Richmond that is rehabilitating vacant, blighted homes and reselling them at affordable prices is “working as it was designed,” according to the latest newsletter published by the nonprofit Richmond Community Foundation (RCF).
The program, which began rehabbing its first blighted property earlier this year, was launched as a way to deal with the many long-vacant, unattractive properties in Richmond that have been attracting squatters, fires and criminal activity.
As part of the strategy, which was pitched in 2014 by prominent attorney and Richmond resident John Knox, the city is issuing “social impact bonds” to attract investors who want their investment to have a positive social impact, even if it means the returns are not as large. Their investment is used by the nonprofit RCF to buy vacant homes from lenders such as banks for the purpose of rehabilitation.
The renovated homes are then sold at affordable prices to lower-income residents, with top priority given to those who graduate from SparkPoint’s First Time Homebuyer Program. SparkPoint is a nonprofit financial education center in Richmond that guides clients toward financial stability.
In its latest newsletter, RCF says the program is operating as planned. After Mechanics Bank purchased the entire series of bonds in December, two properties were swiftly acquired. One of those homes, in the 600 block of 17th Street, has already been rehabbed and sold to a first-time homebuyer, the nonprofit said. The other will be finished this month, with several SparkPoint clients prepared to purchase.
“We have acquired two additional properties, and are working with the probate process to acquire an additional 15 properties,” the RCF newsletter states. “We are also working with the County Tax Collector, Russell Watts, and his staff to move a number of properties to tax sale.”
Earlier this year, program officials said they hoped to rehab hundreds of Richmond homes, with many located in the Belding Woods, Iron Triangle, Pullman, Santa Fe and Coronado neighborhoods.
http://richmondstandard.com/2016/08/new-program-renovating-blighted-richmond-properties-working-as-designed/
Enterprising Investor
8 years ago
Mechanics Bank and California Republic Bancorp Announce Strategic Merger (4/28/16)
WALNUT CREEK, Calif. & IRVINE, Calif.--(BUSINESS WIRE)--Mechanics Bank (“Mechanics”) and California Republic Bancorp (“CRB”) (OTCBB: CRPB), a bank holding company for California Republic Bank, today announced that they have reached a definitive agreement to merge. The transaction has been approved by the Boards of Directors of each company. Under the terms of the agreement, CRB shareholders will receive $37.19 per share in cash.
Headquartered in Irvine, CRB is a commercial and private lending institution with approximately 500 employees and five regional commercial banking locations throughout Southern California. As of March 31, 2016, CRB had approximately $1.8 billion in total assets. CRB also operates a significant auto lending division across 14 states. The combined entity would have approximately $5.4 billion in total assets.
“We think California Republic Bank is the perfect complement for Mechanics Bank,” said Ken Russell, President and CEO of Mechanics Bank. “Mechanics Bank has plenty of capital and capacity, and CRB is an extraordinarily effective and efficient asset generator. We both are committed to a very personal and high-touch, relationship-based form of banking, and both banks fill niches that big banks can’t.”
John DeCero, President of California Republic Bancorp, commented, “We believe the future prospects of these two outstanding organizations as a combined entity are tremendous. There’s very little overlap between the two institutions and many synergies.”
Completion of the transaction is subject to customary closing conditions, including the receipt of required regulatory and shareholder approvals. The transaction is expected to close in the second half of 2016. Clients of both banks should continue to do business with their current bankers, and expect little to change as the two organizations are brought together.
Keefe, Bruyette & Woods, Inc. acted as financial advisor to CRB, 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 based in Walnut Creek, California. With $3.6 billion in assets, it is the largest bank headquartered in the Bay Area’s East Bay region. Its 30 branch offices throughout Northern California provide a highly personalized relationship banking experience that includes consumer and business banking services, commercial lending, cash management services, and comprehensive trust and wealth management services.
About California Republic Bank
California Republic Bancorp is a $1.8 billion financial services company that operates as the holding company for California Republic Bank. California Republic Bank is a full-service commercial bank providing loans, deposit and cash management services to individuals, businesses, investors, and family offices. The Bank offers its clients direct access to decision makers, unparalleled responsiveness, seasoned Relationship Managers and state-of-the-art technology. The Bank has five branch offices serving Southern California, located in Newport Beach, Beverly Hills, Irvine, Westlake Village and San Diego. The Bank also operates CRB Auto, a division of the bank, which is a relationship based, indirect auto lender, which purchases auto contracts from both franchised and select independent automobile dealerships throughout 14 States—Arizona, California, Colorado, Idaho, Illinois, Iowa, Kansas, Missouri, Nevada, Oklahoma, Oregon, Texas, Utah, and Washington.
http://www.businesswire.com/news/home/20160428007079/en/Mechanics-Bank-California-Republic-Bancorp-Announce-Strategic
Enterprising Investor
9 years ago
California Private Placement Market May Be Pivoting (11/05/15)
by Kyle Glazier
PHOENIX – The relatively opaque private placement market, which has been very strong in California, may be slowing down after years of growth and shifting from a totally bank-dominated market to a more diverse range of purchasers, market participants believe.
The line between a private placement of municipal securities and a more traditional bank loan is sometimes fuzzy and full of ambiguity over disclosure, but issuers have turned increasingly to both techniques in recent years because of the relative simplicity of dealing with only one investor or lender.
The limited disclosure requirements that apply to non-public offerings of municipal bonds, particularly to loans, make it difficult to pin down exactly how big the multi-billion dollar market is nationally or in the Golden State. Observers described evolving practices in California.
Banks have been ramping up their muni holdings, with Federal Deposit Insurance Corporation data showing that bank holdings of municipal bonds have risen from just over $270 billion in June 2013 to about $325 billion in June this year.
Banks have been attracted to the strong performance munis have provided and the better risk profile attached to municipal securities compared to other kinds of debt.
Data provided by Thomson Reuters shows that private placements of munis totaled about $24 billion in 2014, with California accounting for some $4.4 billion of that total.
That was up from just $1.8 billion nationwide in 2005, of which $277 million were in California.
As of Nov. 4, Reuters data shows that neither the nation nor California are on pace to reach last year's levels, with California's activity slowing more.
Total private placement volume through Nov. 4 sat at $15.4 billion nationally and at $850 million in California.
Roger Davis, a partner at Orrick, Herrington & Sutcliffe in San Francisco, said he and other lawyers at his firm have been involved in California private placements, sometimes as counsel to the issuer and sometimes as counsel to the purchaser of the securities.
He said such deals occur as they traditionally have, with unrated or lower-rated credits, but have also broadened to include more types of transactions and include all sectors.
"They're occurring both where you would expect them to and replacing more traditional financing," Davis said. "We see it in the general government area, we see it in healthcare, we see it in K-12 education."
Davis said private placements have long been a bank-dominated market, but in his experience may be pivoting a bit away from that.
"It may be the case that there are somewhat fewer of those," Davis said of bank direct purchases.
He said that he has seen an increasing number of purchases made by hedge and infrastructure funds.
Davis said it's not clear from his perspective whether the direct placement market in California is losing steam.
"I can't say that it's shrinking or growing," he said. "They're still a material factor in the market. It's hard to tell how material a factor they are."
Several market participants discussed the California private placement market in at The Bond Buyer's California Public Finance Conference last month in San Francisco, saying the market may have peaked a year or two ago.
Those discussions also indicated that between 15 and 20 banks are consistently active with private placements in the state.
Dmitry Semenov, vice president and commercial relationship manager at Umpqua Bank in Roseville, Calif., said he has seen a number of smaller commercial banks getting involved in the private placement market over the last couple of years.
The new competition has given issuers more access to inexpensive borrowing, but it is unclear how long that will last, Semenov said.
"They're aggressive," Semenov said of the new market entrants, adding that he has seen some examples of very loose covenants and a potential lack of due diligence. "Lots of cheap money."
Semenov said that his bank is very active in the private placement market, totaling about $500 million in the last five years. Private placements are used for almost everything now, he said.
"At this point it covers pretty much the entire spectrum of issuers," Semenov said.
Some private placements are more of a one-off from banks who generally don't do them.
C.J. Johnson, chief financial officer at Mechanics Bank, a community bank in the San Francisco Bay Area, said his bank's recent decision to purchase $3 million of social impact bonds in a private placement was not a normal part of Mechanics' business.
In that deal, Richmond, Calif. is issuer of $3 million of bonds with a 0% coupon for the Richmond Community Foundation to use to acquire abandoned houses and sell them to qualified low-income homebuyers. The deal is risky, as Mechanics only gets its potential 10% annual return on its $3 million of the project is a success.
The bank gets credit under the Community Reinvestment Act, which encourages financial institutions to meet the credit needs of their communities. Regulators take a bank's CRA performance record into account when considering an institution's application for deposit facilities.
"I would say we're not really active in this market at all," Johnson said when asked about private placement activity. "It's a little bit of a one-off."
Johnson said the bank was motivated more by the local community angle, calling the situation "unique."
"We're a community bank, and this is our community," he said of Mechanics, which has three Richmond branches.
Regulators are in the midst of trying to bring clarity to the private placement sector, where there is significant confusion and controversy.
Issuers and banks are often unsure of whether an instrument is a loan or a security subject to Securities and Exchange Commission and Municipal Securities Rulemaking Board Rules, and broker-dealer groups have said repeatedly that some municipal advisors are acting improperly as placement agents soliciting banks to participate in these types of non-public transactions.
Analysts have called for more prompt voluntary disclosure by issuers of all their debts.
The Government Finance Officers Association executive board recently approved a best practice document recommending voluntary disclosure of information on direct placements, loans, and other credit arrangements with private lenders or commercial banks.
http://www.bondbuyer.com/news/regionalnews/california-private-placement-market-may-be-pivoting-1088810-1.html
Enterprising Investor
9 years ago
Mechanics Bank goes on hiring binge to become a more aggressive lender (10/27/15)
Mechanics Bank is hiring seasoned bankers to step up its lending in 2016.
Mechanics spent much of the summer strengthening its credit and finance groups to set the stage for expanding its commercial banking team. Business lending and commercial real estate lending are expected to be high on the bank's agenda in the year ahead.
The Walnut Creek-based bank plans to hire an additional 60 to 70 people in the months ahead, adding to its workforce of 420 people, said CEO Kenneth Russell, who has worked with the bank's new ownership since the late 1980s.
"Because of the legacy of the Ford Group, we have a trail of talent. We know where the people are," Russell said of his recent efforts to hire eight to 10 key people. "It was like the Blues Brothers putting the band back together."
A recent interview with Russell and Mechanics Bank Chairman Carl Webb was an opportunity to discuss the vision for the Bay Area's largest community bank since Ford Financial Fund bought a 70 percent stake in the bank last April.
"We're every bit as pleased five months post-close as we were ahead of the acquisition. But you always find things once you get the keys and look under the hood," Webb said. "To a large extent this acquisition has been surprise-free."
Webb and his team appear to be rebuilding Mechanics Bank after prior leadership made substantial job cuts and pulled back on lending and visibility in the community.
"This bank had cut too deeply. That was evident to us early on," Webb said. "I characterize it as the new Mechanics Bank."
(The hiring was readily apparent on a recent visit to headquarters, with a crowded parking lot and cubicles dotting what had been open floor space.)
"We're trying to re-engage the lending efforts here. That is job one," Webb said. "To get the bank back in the market, become more visible and I would even say more aggressive in our lending.
"We have a 50 percent loan-to-deposit ratio. That's too low," Webb added.
All those efforts are integral for the bank's new owners to realize their vision of building a strong community banking operation in California.
"What we are focused on right now is making Mechanics Bank the best it can be and retooling it for what we see as its vision going forward: to serve as a platform for other acquisitions.
"Acquisitions don't come with a calendar," Webb said, adding that his team is closely monitoring about 20 banks as potential purchases. Plus Webb says he's receiving calls from banks eager to talk with him about how the Mechanics Bank transaction was structured since Ford took a majority stake vs. most buyers traditionally wanting complete ownership.
"We have a big checkbook," Webb said. "I don't say that boastfully, but we do have the appetite, the expertise and the capital."
He was eager to reiterate Ford's vision to acquire more California banks, focusing on those with assets of at least $1 billion. "It takes just as much time and effort to deal with a $500 million bank acquisition as it does to buy a $5 billion bank," Webb said.
Webb, who has decades of experience in acquiring banks, is keeping his options open when it comes to M&A negotiations.
He says an acquired bank may not be reflagged Mechanics Bank, especially if it's located outside the Bay Area. He doesn't see why the newly acquired bank should necessarily walk away from the brand equity a Southern California bank has built up over many years.
Russell's role as CEO was initially billed as being on an "interim" basis, but that reflects his willingness to step aside when his successor is found, rather than the bank operating in a holding pattern as it conducts a CEO search.
After all, Webb — reflecting his years of negotiating bank deals — says Mechanics Bank's next bank purchase will come with its own CEO. (Webb declined to discuss details over the sudden departure of the bank's prior CEO, Christa Steele.)
Webb sees plenty of room for industry consolidation.
"Clearly, there's over-capacity in banking. There doesn't need to be a bank branch on every corner. Nothing makes more sense that pushing two banks together," Webb said, noting that over his three decades in banking the number of banks in America has declined from 18,000 to 6,400.
But Webb's not giving a timetable on when the bank will make its next purchase.
"One thing that makes you a better acquirer is patience," Webb said. "Patience has always served us well. Typically, the more patience we had, the better deal we got."
http://www.bizjournals.com/sanfrancisco/blog/2015/10/mechanics-bank-retools-ford-banking-acquisitions.html
Click on link for video to view interview of Carl Webb.
Enterprising Investor
9 years ago
Mechanics Bank CEO Christa Steele out as bank goes private (6/17/15)
Mechanics Bank President and CEO Christa Steele has left the Walnut Creek, Calif.-based bank, after a Dallas investment firm acquired majority control of the bank this year.
The bank confirmed her departure on Monday. Kenneth Russell is now interim president and CEO, with the board conducting a search for a permanent successor to Steele. Steele also stepped down from the bank's board. Mechanics Bank was mum on further details about Steele's exit.
"As a matter of long-standing bank policy, we don't discuss employment matters beyond" the information already provided publicly, a Mechanics Bank spokesman said.
Steele joined Mechanics Bank in October 2013 and saw one of the most tumultuous years of the bank's 110-year history that included the family-controlled bank's ultimate sale. Her tenure also included the departure of several long-time executives.
In speaking with the San Francisco Business Times (a Bizwomen sister publication) late Monday, Steele said 2014 was a very tumultuous year indeed. Steele said the bank evaluated three different proposed transactions before selecting Ford Financial Group's offer as well as pursuing the bank's growth initiatives.
Steele says she's proud of the bank's core earnings improvement of 43 percent in 2014, which she believes is the best of any bank.
"I'm really proud of our success in 2014," Steele said. "I will be forever grateful for my time at Mechanics Bank."
As for what's next, Steele was clear: Summer vacation with her children. She made a "pinky-swear" with them, promising no talk of work before Labor Day. She said she'll consider her options later this year and decide in early 2016 on what will be the next chapter of her career. Steele says she's developed a fondness for the Bay Area.
"I could be an investment banker," Steele said, after navigating the bank's sale to Ford Financial. "Or I may run a bank again."
Back at Mechanics Bank, Russell has worked in the financial services industry for four decades. Prior to his joining the Ford Financial Group six years ago, he was a member of the managing board of directors for KPMG Germany. In that capacity, Russell led the audit-financial services group and served as the global lead partner for KPMG in the accounting firm's relationship with Deutsche Bank.
Following Russell’s service as a member of KPMG's German leadership, he was the lead financial services partner in the United States for KPMG’s Department of Professional Practice group in New York, where he focused on accounting issues relating to financial instruments, hedging and securitization.
Mechanics Bank's new majority owner, the Dallas-based investment firm Ford Financial, said on April 16 that it had offered to "now purchase all outstanding shares" of Mechanics Bank. (OTC BB: MCHB) Ford Financial closed on the purchase of a 70 percent stake in the bank at $26,832 per share on April 30.
Yahoo Finance shows the last trade in the thinly traded bank's stock occurred June 3 at a price of $26,800, with two shares changing hands that day.
Last September, Ford Financial said it planned to purchase a majority stake between 51 percent and 65 percent of the bank at $26,832 per share.
The bank's new majority owner told the San Francisco Business Times last October that it envisioned building a larger California community bank through acquisitions, with Mechanics Bank serving as the platform on which to build. Mechanics Bank is often considered the Bay Area's largest community bank, with more than $3 billion in assets and 30 branches in Northern California.
"We're not making any secrets about our ambitions," Carl Webb, a co-managing member of Ford Financial and chairman of Mechanics Bank, said in the October interview. Steele was portrayed at the time as a key ingredient in bringing those ambitions to fruition.
Webb and co-managing member Gerald Ford have a long history of investing in California banks — and selling them for big profits.
Despite Steele's departure, Webb stood by the firm's ambitions for Mechanics Bank in a statement Monday.
“This singular event does not change the fact that the bank remains totally committed to being the best premier community bank in the Bay Area while ascribing to the highest levels of professionalism and quality customer service," Webb said.
http://www.bizjournals.com/bizwomen/news/latest-news/2015/06/mechanics-bank-ceo-ford-financial-mchb-investors.html?page=all
Enterprising Investor
10 years ago
The 15 hottest markets for homebuyers and sellers this spring (5/01/15)
California dominates list
Spring ushers in the start of the busiest home-buying season, and according to Realtor.com’s Chief Economist Jonathan Smoke, supply and demand have gained strong momentum, bringing these 15 markets to the top of the list this year.
“As the market shows strong signs of health and improvement during the start of spring home-buying season, these 15 markets are the best in the country from both a supply and demand perspective,” Smoke said.
“Sellers are seeing listings move between 29 and 49 days more quickly than in the rest of the country and at an accelerating pace from just last month – an average of five days faster. Meanwhile, these markets are especially attractive to buyers, as listings are viewed two-to-three times more often than the national average.”
According to Smoke, median list prices increased to $225,000, up 9% year-over-year and 2% over March, and the amount of time homes stayed on the market, a median of 73 days, was down 12% year-over-year and month-over-month.
Additionally, inventory supply increased 5% over March. However, it is still down over last year.
So without further ado, here are the 15 hottest medium-to-large sized markets in the country for both buyers and sellers.
Markets made the following list because two things were present: properties sell quicker than the national average, and there are plenty of viewings for homes once listed for sale:
15. Sacramento--Roseville--Arden-Arcade, California
14. Oxnard-Thousand Oaks-Ventura, California
13. San Luis Obispo-Paso Robles-Arroyo Grande, California
12. Santa Cruz-Watsonville, California
11. Boulder, Colorado
10. San Francisco-Oakland-Hayward, California
9. Detroit-Warren-Dearborn, Michigan
8. Ann Arbor, Michigan
7. Nashville-Davidson--Murfreesboro--Franklin, Tennessee
6. San Diego-Carlsbad, California
5. Boston-Cambridge-Newton, Massachusetts-New Hampshire
4. Denver-Aurora-Lakewood, Colorado
3. Vallejo-Fairfield, California
2. Santa Rosa, California
1. Dallas-Fort Worth-Arlington, Texas
http://www.housingwire.com/articles/33755-the-15-hottest-markets-for-homebuyers-and-sellers-this-spring
[MEI shared this with me today]
Enterprising Investor
10 years ago
Mechanics Bank Announces Fourth Quarter Earnings (3/03/15)
WALNUT CREEK, CA, March 3, 2015 — Mechanics Bank ("the Bank") today announced fourth quarter net income of $8.5 million. Full-year 2014 earnings rose to $25.4 million which represents an 18.1% increase over 2013 earnings. This is despite absorbing two significant but strategic non-interest related expenses in the amount of $9.6 million. These one time expenses were associated with several key initiatives employed to improve operating performance and enable future growth.
Total loans grew modestly in 2014 to $1.65 billion. Continued streamlining of the credit process and the addition of experienced lenders broadened the lending platform.
The Bank’s 2014 net interest margin was 3.36%, and included total interest recoveries of $5.8 million creating a one-time improvement to interest income.
Non-accrual loans continued to rapidly decline, dropping to $16.8 million at the end of 2014 from $29.2 million a year ago, a 42.3% improvement. Non-accrual loans as a percentage of total loans declined to 1.02% from 1.78% a year ago. The Bank’s credit culture remains conservative, with an allowance for loan losses of $34.3 million, representing 2.08% of total loans.
Although total deposits remained at $2.93 billion in 2014, core non-interest bearing deposits increased $103 million, or 10.2% over the past year. The Bank’s cost of funds dropped to 0.08% in 2014 from 0.14% in 2013; which reflects the strength of the Mechanics Bank brand and its core funding base.
The Wealth Management Division, which offers investment management and trust, estate and retirement planning services, also shared in significant operating performance improvement and doubled its new business production generating record net profits.
"After a year of change in 2014, Mechanics Bank is well-positioned for the future," said Christa Steele, President and Chief Executive Officer of Mechanics Bank. "The Bank is far more efficient than it was a year ago, and our executive leadership team has made great strides getting us ready to hit the ground running in 2015."
About Mechanics Bank
For more than a century, Mechanics Bank has been committed to helping people build prosperous communities as a trusted financial partner, forging lasting relationships through teamwork, respect and integrity. The $3 billion independent bank, based in Northern California, offers personal banking, business banking, trust, brokerage and wealth management services.
For more information, please visit www.mechanicsbank.com.
https://www.mechanicsbank.com/mechbank/Mbwebsite.nsf/about/media-release-mechanics-bank-q4-2014-earnings
Enterprising Investor
10 years ago
Mechanics Bank and Ford Financial Settle Litigation Seeking to Enjoin Ford Financial Tender Offer (2/18/15)
WALNUT CREEK, Calif. & DALLAS--(BUSINESS WIRE)--Mechanics Bank (OTCMKTS: MCHB) (the “Bank”) and Ford Financial Fund II, L.P. (“Ford Financial”) today announced that they have signed a memorandum of understanding to settle a lawsuit pending in the Superior Court of the State of California and seeking to enjoin Ford Financial’s tender offer to acquire up to 65% of the outstanding shares of the Bank’s common stock.
The terms of the memorandum of understanding provide that:
• for the three calendar years following the completion of the tender offer, the Bank will include the following information in each of its annual reports to shareholders (and post this information on the Bank’s website): (a) audited consolidated financial statements; (b) a management discussion and analysis of financial results; and (c) a description of each transaction between the Bank and Ford Financial or its subsidiaries that is valued at $120,000 or more, or is otherwise considered a material transaction by the Bank;
• for the three calendar years following the completion of the tender offer, the Bank will not take steps solely intended to prevent its common stock from being traded on the OTC Bulletin Board;
• the Bank will, no later than February 23, 2015, make available on its website, until the completion or earlier termination of the tender offer: (a) the fairness opinion rendered by the Bank’s financial advisor, River Branch Capital LLC (“River Branch”), to the Bank in connection with the tender offer; (b) selected portions of the presentation made to the Bank’s board of directors by River Branch in connection with its fairness opinion; and (c) a copy of the transaction agreement, the amended and restated offer to purchase and the Bank’s recommendation statement regarding the tender offer;
• the termination fee payable by the Bank in certain circumstances under the transaction agreement between the Bank and Ford Financial will be reduced from $20 million to $10 million; and
• the plaintiff will withdraw his application to enjoin the tender offer and release the Bank, Ford Financial and the Bank’s board of directors from liability relating to the tender offer.
This press release is for information purposes only and is not an offer to purchase or a solicitation of an offer to purchase with respect to any securities. The tender offer is being made solely pursuant to the amended and restated offer to purchase and related letter of transmittal, which set forth the complete terms of the tender offer. Shareholders should read these materials carefully because they contain important information, including the terms and conditions of the tender offer. Shareholders may obtain a free copy of these documents by contacting D.F. King & Co., Inc. at (877) 361-7972 (toll-free) or (212) 269-5550 (collect).
About Mechanics Bank
For more than a century, Mechanics Bank has been committed to helping people build prosperous communities through forging lasting relationships through teamwork, respect and integrity. The $3 billion independent bank, based in Northern California, offers personal banking, business banking, trust, brokerage and wealth management services. For more information, please visit www.mechanicsbank.com.
About Ford Financial
Ford Financial Fund II, L.P. is a private equity fund with approximately $755 million in commitments that is focused on investments in financial services companies. Ford Financial’s Co-Managing Members, Gerald J. Ford and Carl B. Webb, possess a rare combination of investment skill, deep industry expertise and decades of operational experience. Ford Financial invests in a variety of opportunities, from healthy companies in need of growth equity to troubled banks that need to be recapitalized. Unlike most private equity funds, Ford Financial is structured and prepared to become a bank holding company under applicable banking regulations.
http://www.businesswire.com/news/home/20150218006695/en/Mechanics-Bank-Ford-Financial-Settle-Litigation-Seeking#.VOYzEIktGUk
Enterprising Investor
10 years ago
Ford Financial Fund Receives Approval from California Department of Business Oversight to Acquire up to 65% of the Common Stock of Mechanics Bank (1/27/15)
DALLAS--(BUSINESS WIRE)--Ford Financial Fund II, L.P. (“Ford Financial”) announced today that its wholly owned subsidiary, EB Acquisition Company LLC (the “Purchaser”), has received the requisite approval of the California Department of Business Oversight to acquire up to 65% of the outstanding shares of common stock of Mechanics Bank (the “Bank”). As a result of this approval, shareholders of the Bank who have tendered or subsequently tender shares pursuant to the cash tender offer commenced by the Purchaser to acquire up to 65% of the outstanding shares of common stock of the Bank, on a fully diluted basis, at a price of $26,832.00 per share, in cash, without interest and less any applicable withholding taxes, on the terms and subject to the conditions set forth in the Amended and Restated Offer to Purchase, dated December 15, 2014 (the “Offer to Purchase”), will not be able to withdraw those shares, regardless of whether the offer is extended.
The Purchaser also announced today that it has further extended the expiration date of the offer. The tender offer is now scheduled to expire at midnight, New York City time, on February 27, 2015, unless extended by the Purchaser (such date and time, as the same may be extended or earlier terminated, the “Expiration Time”). The tender offer was previously scheduled to expire at midnight, New York City time, on February 16, 2015. As of 5:00 p.m., New York City time, on January 26, 2015, approximately 13,084 shares were tendered pursuant to the offer.
D.F. King & Co., Inc. is acting as the information agent for the tender offer. Requests for documents and questions regarding the tender offer may be directed to D.F. King & Co., Inc. at (877) 361-7972 (toll-free) or (212) 269-5550 (collect).
This press release is for information purposes only and is not an offer to purchase or a solicitation of an offer to purchase with respect to any securities. The tender offer is being made solely pursuant to the Offer to Purchase and related letter of transmittal, which set forth the complete terms of the tender offer.
About Ford Financial
Ford Financial is a private equity fund with approximately $755 million in commitments that is focused on investments in financial services companies. Ford Financial’s Co-Managing Members, Gerald J. Ford and Carl B. Webb, possess a rare combination of investment skill, deep industry expertise and decades of operational experience. Ford Financial invests in a variety of opportunities, from healthy companies in need of growth equity to troubled banks that need to be recapitalized. Unlike most private equity funds, Ford Financial is structured and prepared to become a bank holding company under applicable banking regulations.
http://www.businesswire.com/news/home/20150127006541/en/Ford-Financial-Fund-Receives-Approval-California-Department#.VMsIQ4ktGUk
Enterprising Investor
10 years ago
Richmond’s Mechanics Bank to be sold to Texas billionaire’s private-equity firm (10/03/14)
Richmond’s 109-year-old Mechanics Bank announced in a statement last week that it has entered into an agreement to be acquired by Ford Financial Fund II, of which Dallas billionaire Gerald J. Ford is a managing partner.
Ford Financial agreed to a tender offer to own at least a 51-percent interest in the locally-owned bank, which has 33 locations in Northern California and more than $2.7 billion in assets.
Mechanics Bank shareholders will greatly benefit from the deal, as their stock would be worth “62-percent more than the closing price the day the offer was made,” according to San Francisco Chronicle columnist Andrew Ross.
“Ford intends to ‘roll up’ — as it is known in the private-equity business — community and regional banks like Mechanics, to be sold off as a larger package down the road at a handsome profit,” Ross wrote.
Christa Steele, president and CEO of Mechanics Bank, lauded the deal in a joint statement with Ford Financial on Sept. 25.
“The board strongly believes this transaction represents exceptional value for our shareholders and is in the best interest of our clients and employees,” Steele said. “Ford Financial is a highly successful bank investor with a proven 35-year track record of partnering with financial institutions to facilitate growth.”
Some Mechanics Bank customers are unhappy with the sale announcement and are considering moving their accounts. A main complaint is some customers joined Mechanics expressly because it is a community bank and not one of the financial behemoths, according to Richmond Confidential and social media chatter.
Mechanics Bank got its start when founder E.M. Downer, at one point a railroad station agent in Pinole, began cashing paychecks for fellow railroad workers who trusted him to return with their gold. In 1905, he opened the Bank of Pinole, and in the 1920s what had become Mechanics Bank pioneered personal loans, which the company says is why Mechanics survived the Great Depression while thousands of other banks failed.
In the 1940s, Mechanics Bank served the Henry Kaiser shipyard builders, even after they had lost their jobs after the war ended. During the 1990s, Mechanics expanded beyond West Contra Costa County, opening locations in Walnut Creek, Oakland, Marin, the Napa Valley, San Francisco and the Sacramento region.
The company said it reached nearly $3 billion in assets in 2011 despite the Great Recession.
http://richmondstandard.com/2014/10/richmond-based-mechanics-bank-sold-texas-billionaire/
Enterprising Investor
10 years ago
Ford Financial Fund Commences Tender Offer to Acquire Up to 65% of the Common Stock of Mechanics Bank (10/31/14)
DALLAS--(BUSINESS WIRE)--Ford Financial Fund II, L.P. (“Ford Financial”) announced today that its wholly owned subsidiary, EB Acquisition Company LLC (the “Purchaser”), has commenced a cash tender offer to acquire up to 65% of the outstanding shares of common stock of Mechanics Bank (the “Bank”) on a fully diluted basis (the “Maximum Aggregate Amount”) at a price of $26,832.00 per share, in cash, without interest and less any applicable withholding taxes, on the terms and subject to the conditions set forth in the Offer to Purchase, dated October 31, 2014 (the “Offer to Purchase”).
The tender offer will expire at midnight, New York City time, on January 15, 2015, unless extended by the Purchaser (such date and time, as the same may be extended or earlier terminated, the “Expiration Time”).
If shareholders validly tender shares of common stock of the Bank (the “Shares”) in excess of the Maximum Aggregate Amount, only the Maximum Aggregate Amount will be accepted for purchase, and the Shares will be purchased on a pro rata basis. As a result, shareholders that validly tender Shares may have a portion of their Shares returned to them, and the amount of Shares returned will depend on the level of participation of shareholders in the tender offer.
If proration of the Shares is required, the amount of each shareholder’s validly tendered Shares accepted for purchase will be determined by multiplying (i) the quotient of (x) the number of Shares validly tendered by such shareholder divided by (y) the total number of Shares validly tendered by all shareholders by (ii) the number of Shares representing the Maximum Aggregate Amount. The Purchaser will determine the pro rata amount as soon as practicable after the Expiration Time and announce the results of such proration promptly by press release or other permitted means.
The tender offer is subject to the condition that the number of Shares validly tendered in accordance with the terms of the Offer to Purchase on or prior to the Expiration Time represents at least 51% of the outstanding Shares as of the Expiration Time, on a fully diluted basis, as well as the receipt of regulatory approvals and other customary closing conditions. In addition, there are no withdrawal rights associated with the tender offer. As a result, shareholders who tender Shares pursuant to the tender offer will not be able to withdraw those Shares, regardless of whether the tender offer is extended.
D.F. King & Co., Inc. is acting as the information agent for the tender offer. Requests for documents and questions regarding the tender offer may be directed to D.F. King & Co., Inc. at (877) 361-7972 (toll-free) or (212) 269-5550 (collect).
This press release is for information purposes only and is not an offer to purchase or a solicitation of an offer to purchase with respect to any securities. The tender offer is being made solely pursuant to the Offer to Purchase and related letter of transmittal, which set forth the complete terms of the tender offer.
About Ford Financial
Ford Financial is a private equity fund with approximately $755 million in commitments that is focused on investments in financial services companies. Ford Financial’s Co-Managing Members, Gerald J. Ford and Carl B. Webb, possess a rare combination of investment skill, deep industry expertise and decades of operational experience. Ford Financial invests in a variety of opportunities, from healthy companies in need of growth equity to troubled banks that need to be recapitalized. Unlike most private equity funds, Ford Financial is structured and prepared to become a bank holding company under applicable banking regulations.
Forward-Looking Statements
This press release contains forward-looking statements as defined by the federal securities law which are based on our current expectations and assumptions and which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, projected or implied, including, among other things, risks relating to the expected timing of the completion and financial benefits of the tender offer and definitive agreement. Neither Ford Financial nor the Bank undertakes any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Ford Financial Fund II, L.P.
James H. Dunavant, 214-871-5134
jdunavant@fordfundlp.com
http://www.businesswire.com/news/home/20141031006003/en/Ford-Financial-Fund-Commences-Tender-Offer-Acquire#.VFfW5Il0yUk
Enterprising Investor
10 years ago
Mechanics tunes up as growth vehicle (10/10/14)
A new majority owner will transform the bank into a platform for acquisition-driven growth, and the buyer’s M.O. suggests Mechanics will get a lot bigger, fast: ‘We’ve always been acquisitive. It’s served us well.’
Mechanics Bank’s planned sale of a controlling interest to Ford Financial Fund means its second century is likely to look a lot different than its first.
The 109-year-old bank will now be used as a platform for other bank acquisitions, likely starting in the Bay Area and possibly ending with a sale. It’s a strategy with which Ford Financial is very familiar, having profitably bought, built up through acquisition and sold banks around the country. That’s its road map for Mechanics as well.
“We’re not making any secrets about our ambitions,” said Carl Webb, a co-managing member of Ford Financial, who along with bank President and CEO Christa Steele sat down with the Business Times to discuss the future of the bank, based in Richmond but about to move its headquarters to Walnut Creek. Webb said his firm has already discussed with Mechanics Bank’s board possible acquisition candidates.
When news of Ford’s tender offer for 51 to 65 percent of the bank’s shares broke late last month, Webb said his phone started ringing. He declined to identify the parties on the other end of the line. Were callers simply offering congratulations, or offering to begin acquisition talks?
“It was both,” he said. “We had a few calls that said, ‘Just keep us in mind.’”
“We’ve got visions for what we think, hope, desire this company to look like in five or 10 years down the road,” Webb said, noting that Mechanics Bank will be bigger but he hesitates to say by how much. “There are opportunities, very close at hand, in concentric geographies. That’s where you will see us first.”
What’s surprising many in the financial community is the profile of his targets. Webb said he’ll be looking for community banks with $1 billion to $5 billion in assets, primarily in California. That’s relatively large prey for Mechanics, with assets of $3.3 billion. What’s more, while banking insiders expect the ranks of small banks to continue to thin, those above $1 billion are generally regarded as large enough to survive independently. Ford Financial, with its large checkbook, sees it differently.
“We’ve subscribed to this theory that there’s over-capacity in the banking system in this country,” Webb said. “What we’re typically able to do with a larger bank is to buy a competing bank, take out 45 percent of the costs and retain 97 percent of the deposits. That’s a hugely accretive business model and everyone’s employed it from Wells Fargo to us and everyone in between.
“As long as that dynamic is still there, bank acquisitions will continue,” Webb said, noting that community banks are facing serious headwinds with costly new regulations and low interest rates pressuring profits. “Size and scale have become more important. It’s become a size-and-scale game for a lot of reasons but especially due to regulatory pressures.”
A ‘tipping point’ for bank buyouts?
With Mechanics Bank out shopping for acquisitions, along with Bank of Marin and others, it could signal that Bay Area banking consolidation is taking on a new flavor. It’s not just ailing or tiny institutions that are looking to find a match.
“We may have reached a tipping point in which strong community banks decide to merge,” said Michael Natzic, a senior vice president at Crowell Weedon, which makes a market in shares of about 75 California community banks.
Mechanics Bank has long been seen as a conservatively managed bank with roots stretching back to 1905 when it began in Pinole cashing paychecks for railroad workers in Contra Costa County. The bank’s moniker comes from the name railroad workers sported at the time, which also is reflected in other San Francisco institutions such as the Mechanics Institute, with its private library and chess room.
Will Ford opt for a name change?
“No, no. This is such a unique bank, if not the most unique bank, that we’ve been associated with in our 35 years,” Webb said. “You have a 109-year-old bank that is well identified, enjoys a great reputation and good brand identity. The last thing you’d want to do is change the name.”
“And there are some horrible names in banking, by the way.”
“There’s always a place for a community bank, and that’s what Mechanics Bank has been and we expect it to be one for a long, long time,” he said. “We cut our teeth in this business on community banks. I grew up in a small West Texas town. The bank was the town, it was a reflection of the community.”
‘California has been very good to us’
Asked whether Ford Financial taking control of Mechanics Bank means it’s only a matter of time before the entire bank is sold, Webb said, “No, private equity is a term used broadly, and means many things. We don’t have any clock running or time horizon or date in the future that we have to hit. The best thing for this company — and in turn for Jerry (Co-Managing Member Gerald Ford) and myself as general partners and our limited partners — is to maximize the value of this company over a longer period of time by growing it organically and acquisitively.”
“We’ve always been acquisitive. It’s served us well. As long as you’re growing and creating exponential value, why stop?” Webb said.
It’s not often that people from Texas trumpet California’s business environment, but Webb said the private equity firm has long sought opportunities nationwide, with an emphasis on California.
“California has been very good to us,” Webb said. “We love California.”
Ford Financial acquired a series of banks that rolled up into Golden State Bancorp, parent of CalFed Bank, which was sold to Citigroup in 2002 after making six acquisitions over nine years, turning a $12 billion institution in 1994 into one with $55 billion by the time of the sale. More recently, the bank sold Santa Barbara Bank & Trust to Union Bank in 2012.
All the pieces are in place for Mechanics to go on a similar acquisitions tear, he said.
“Is this bank a platform for growth? We came away with that box absolutely checked,” Webb said. “By that I mean, can we go out and use this bank, which is a solid, well-performing bank, as a platform for other acquisitions in California? That’s our vision.
“The first acquisition is the most difficult and then it becomes successively easier in cost-savings and consolidation as you acquire competitors in the market,” Webb said. It also becomes easier for potential merger partners to see the vision being realized.
“There are a lot of banks out there that are tired. By that I mean you’ve got a tired management team, you’ve got a tired board of directors, or the board is tired of the management team not delivering the financial plans they put forward every year, or shareholders are tired,” Webb said.
“I’m excited to be back in the Bay Area,” Webb said, noting that his wife grew up in the region and he serves on the board of San Francisco real estate giant Prologis. “The Bay Area is a special place. For a kid who grew up in a hardscrabble West Texas town, it’s the last place I expected to be.”
http://www.bizjournals.com/sanfrancisco/print-edition/2014/10/10/mechanics-bank-ford-financial-fund-m-a-plans.html?page=all
Enterprising Investor
10 years ago
Mechanics Bank hits the road, moving headquarters out of Richmond (10/09/14)
Mechanics Bank President and CEO Christa Steele said the bank's headquarters is moving from Richmond to Walnut Creek.
Asked when the relocation will become official, Steele said, "It's a paper transaction at this point. The official movement of people occurred over the last couple of years."
The headquarters move began with the 2010 purchase of the Walnut Creek office that will soon serve as the bank's headquarters, she said.
The bank began in 1905 as the Bank of Pinole to cash paychecks for Contra Costa County railroad workers. Mechanics Bank, named for the term used to describe railroad workers, later moved to Richmond, where it enjoyed a storied history.
"The 1940s were a remarkable time of growth in our history, as Henry Kaiser brought his shipbuilding company to Richmond," according to the bank's website. "As a service to the shipbuilders, bankers from Mechanics Bank would go down to the shipyards on Saturday mornings to cash workers' paychecks as they came off their shifts."
Steele made her comments on the headquarters relocation in a wide-ranging interview with the San Francisco Business Times. The interview also included Carl Webb, co-managing member of Ford Financial Fund. The Dallas private equity firm has made a tender offer to purchase control of Mechanics Bank.
The interview with Steele and Webb is the focus of the San Francisco Business Times cover story in the Oct. 10 print edition.
Webb discussed at length Ford's ambitions to use Mechanics Bank (OTC BB: MCHB) as the platform for additional acquisitions.
"We've always been acquisitive. It's served us well. As long as you're growing and creating exponential value, why stop?" he said.
But Webb was emphatic in saying there's no name change in store for Mechanics Bank.
"No, No. This is such a unique bank, if not the most unique bank, that we've been associated with in our 35 years," Webb said. "You have a 109-year-old bank that is well identified, enjoys a great reputation and good brand identity. The last thing you'd want to do is change the name.
"And there are some horrible names in banking, by the way," he added.
http://www.bizjournals.com/sanfrancisco/blog/2014/10/mechanics-bank-headquarters-richmond-walnut-creek.html?page=all
Enterprising Investor
10 years ago
FNB Bancorp CEO could have 'Godfather' moment if bank gets 'generous' buyout offer (10/09/14)
As Bay Area bank mergers accelerate, CEOs are more talkative about who might be on their dance cards.
Bank of Marin CEO Russell Colombo recently told the San Francisco Business Times that the $1.8 billion bank is on the prowl for acquisitions. He sees half the nation's banks disappearing by 2020 due to industry consolidation.
Mechanics Bank's soon-to-be new private equity owner, Ford Financial Fund, says the $3.3 billion Richmond bank— which is moving its headquarters to Walnut Creek— will be the platform for additional acquisitions. A wide-ranging interview with Carl Webb, co-managing member of Ford Financial, and Mechanics Bank President and CEO Christa Steele is the focus of the San Francisco Business Times cover story in the Oct. 10 print edition.
All that merger talk from two of the Bay Area's strongest banks prompted me to turn to another strong bank, the parent of First National Bank of Northern California, to see whether the $905 million bank might join forces with a rival.
South San Francisco-based FNB Bancorp's CEO Tom McGraw says he'd consider joining forces with Bank of Marin or Mechanics Bank at the right price.
"Our board’s vision is to remain independent, with gradual steady growth," McGraw said. "That said, every bank is always for sale if the price is right."
He notes that when he joined the board of what was then the First National Bank of Daly City in 1988, there were about 14,000 commercial banks nationwide. Today, that number is about half that.
"Consolidation within the industry is a reality and I see no signs of that abating. To loosely paraphrase 'The Godfather,' if somebody makes us an offer we can’t refuse, that would generously reward our shareholders, then yeah, we would give that kind of offer very serious consideration," McGraw said.
That's the posture any public company takes, given a board's fiduciary duty to shareholders. But it's important to remember the powerful efficiencies gained in combining banks, which could support a compelling price from the right buyer.
FNB is currently working on its own acquisition. The bank, which purchased Oceanic Bank in 2012, plans to buy Pleasanton-based Valley Community Bank.
Regulators plan to hold a "fairness hearing" on the FNB-Valley deal in San Francisco on Oct. 23. One Valley shareholder, Stephen Taylor Jr., has proposed to purchase up to 40 percent of Valley's shares he doesn't already own at a higher price than FNB plans to pay, according to a notice for the public hearing.
"We are very confident that a blending of Valley Community Bank into First National Bank of Northern California will serve the interests of shareholders of both companies and equally important, the customers of both companies," McGraw said.
He sees Valley Community Bank as a natural fit with FNB's existing franchise.
"Valley has a great market in the East Bay and the South Bay — Livermore, Pleasanton and San Jose," McGraw said. "We have customers in the East Bay and South Bay, but no retail facilities to serve all their banking needs.
"We do offer electronic banking and remote-deposit capture, but community banking is about relationships and those relationships are created, maintained and strengthened through person-to-person contact," McGraw said.
And Valley might not be FNB's (OTC BB: FNBG) last acquisition.
"Finding a way to grow our banking business in these challenging times requires ongoing review of the Bay Area community banking landscape," McGraw said. "With heightened regulatory pressure in an ultra-competitive lending environment, we believe there may be more opportunities to broaden our markets as smaller banks reassess their ongoing viability."
http://www.bizjournals.com/sanfrancisco/blog/2014/10/fnb-bancorp-ceo-bank-mergers-mechanics-bank-marin.html?page=all
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