Heritage Commerce, the parent company of Heritage Bank of Commerce, agreed to merge with United American Bank in a transaction valued at approximately $44.2 million. Both boards of directors approved the transaction, which is subject to customary closing conditions including approval by state and federal bank regulatory agencies and the shareholders of United American.

Heritage will issue approximately 2.8 million of its shares of common stock to the United American common and preferred shareholders in the merger. Additionally, outstanding Series A Preferred Stock and Series B Preferred Stock will be exchanged for $9.1 million in cash at closing.

“United American Bank is a perfect fit for Heritage, as both our values are aligned with fostering client relationships. The combination of our two organizations provides the ability to create revenue and cost synergies while offering United American customers a broader product offering, increased lending limits and an expanded branch delivery system that stretches throughout the San Francisco Bay Area,” said Walter Kaczmarek, president and CEO of Heritage.

Keefe, Bruyette & Woods and Buchalter served respectively as financial advisor and legal counsel to Heritage in the transaction. O’Neill + Partners and Sheppard Mullin Richter & Hampton acted respectively as financial advisor and legal counsel to United American.

Heritage Commerce provides a wide range of banking services through Heritage Bank of Commerce, a multi-community independent bank that offers commercial banking services to small and medium-sized businesses and their owners and employees throughout California.

United American Bank is a full-service commercial bank with full service branches located in San Mateo, Redwood City and Half Moon Bay, CA.