Tuesday, March 1, 2022

DMG Bancshares in California to buy Liberty Bancorp

DMG Bancshares in Irvine, Calif., has agreed to buy Liberty Bancorp in South San Francisco, Calif. 

The $207 million-asset DMG said in a press release that it will pay $31.2 million in cash for the $293 million-asset Liberty. Up to $2.9 million of additional cash could be paid to Liberty shareholders "depending on the occurrence of certain events." 

The deal is expected to close in this summer. 

Liberty has $216 million of loans and $254 million of deposits. 

DMG said it will operate as Liberty Bank after the deal closes. 

“Liberty is a respected banking institution which has focused on serving the needs of small and medium-sized businesses in the vibrant San Francisco Bay Area economy," Don Griffith, DMG's chairman and CEO, said in the release. 

"This acquisition adds to our momentum in creating a premier business bank in California," Griffin added.

DMG, the parent company of California First National Bank, was capitalized in early 2021 with $170 million of commitments. 

Piper Sandler and Aldrich & Bonnefin advised Liberty. Skadden, Arps, Slate, Meagher & Flom advised DMG.

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