425: Southern California Bancorp and California BanCorp Announce Combined Bank Name: California Bank of Commerce, N.A.

Southern California Bancorp and California BanCorp reveal the go-forward name for their combined bank will be California Bank of Commerce, N.A., pending shareholder approval for the holding company name change to California BanCorp.

Summary

• Southern California Bancorp (SCB) and California BanCorp (CBC) have announced that the name for their combined bank will be California Bank of Commerce, N.A.
• The decision was made after exploring available name options and researching existing FDIC and OCC registered financial institutions.
• The new name aims to represent the combined banks' expanded geographic presence and continued focus on serving the commercial banking market.
• The holding company name will change to California BanCorp, subject to BCAL shareholder approval.
• The ticker symbol will be determined later in coordination with NASDAQ.
• The integration team is working on refreshed branding assets and iconography.
• The merger is subject to shareholder and regulatory approvals.
• The announcement includes forward-looking statements subject to risks and uncertainties.

Sentiment

Score: 7

Explanation: The document conveys a positive sentiment regarding the merger and the selection of the new bank name. However, it also acknowledges the risks and uncertainties associated with forward-looking statements, which tempers the overall sentiment.

Positives

• The selection of a familiar name, California Bank of Commerce, N.A., could provide a sense of continuity and stability for customers.
• The combined entity aims to represent an expanded geographic presence and a continued focus on commercial banking.
• The integration team is actively working on branding and iconography, suggesting a proactive approach to the merger.

Risks

• The merger is subject to regulatory and shareholder approvals, which may not be obtained or may impose conditions that adversely affect the combined company.
• The integration of SCB and CBC may not be successful, and cost savings may be less than anticipated.
• Changes in economic conditions could negatively impact the combined company.
• The merger could disrupt the business of SCB, CBC, or both.
• Difficulties in retaining senior management, employees, or customers could arise.
• Bank failures or other adverse developments at other banks could impact general investor sentiment.
• The forward-looking statements are subject to numerous assumptions, risks, and uncertainties.

Future Outlook

The combined bank aims to represent an expanded geographic presence and a continued focus on commercial banking. The holding company name change and ticker symbol are pending shareholder approval and NASDAQ coordination, respectively.

Management Comments

• The name for our combined bank has been decided!
• We know that this has been of interest to team members throughout both organizations.
• The deliberation process involved exploring available name options (including research into existing FDIC and OCC registered financial institutions), with the objective to select a name that would: Represent the combined banks expanded geographic presence Convey the banks continued focus on serving the commercial banking market.

Industry Context

Bank mergers and acquisitions are common in the financial industry as institutions seek to expand their market share, geographic reach, and service offerings. The selection of a new brand name is a critical step in the integration process, aiming to create a unified identity and resonate with customers.

Comparison to Industry Standards

• Many banks undergo rebranding during mergers, such as the TCF Bank and Chemical Bank merger which resulted in the Huntington National Bank brand.
• The selection of a name that reflects the geographic focus and business strategy is a common practice, similar to how Bank of America emphasizes its national presence.
• The process of obtaining shareholder and regulatory approvals is standard for bank mergers, mirroring the steps taken in the merger of BB&T and SunTrust to form Truist Financial Corporation.

Stakeholder Impact

• Shareholders of SCB and CBC will be asked to vote on the merger and the holding company name change.
• Employees of SCB and CBC will be integrated into the combined bank.
• Customers of SCB and CBC will be served by the new California Bank of Commerce, N.A.

Next Steps

• BCAL shareholder approval for the holding company name change.
• Determination of the ticker symbol in coordination with NASDAQ.
• Creation of refreshed branding assets and iconography.
• Obtaining necessary regulatory approvals for the merger.
• Obtaining shareholder approvals for the merger.

Key Dates