HomeStreet, the parent company of HomeStreet Bank, agreed to acquire the San Marcos, CA retail branch of commercial bank Silvergate Bank, as well as its business lending team.
Closing is expected in the first half of 2019, subject to customary closing conditions including regulatory approvals.
As of October 31, 2018, total deposits to be acquired are approximately $123 million. HomeStreet will also acquire certain other assets, including loans totaling approximately $123 million and certain off-balance sheet deposit relationships.
The Silvergate employees who work at the San Marcos branch as well as the business lending team will be offered positions at HomeStreet Bank. Silvergate’s chief banking officer, Dino D’Auria, and his team of commercial bankers and operations staff are expected to become HomeStreet’s San Diego commercial banking team.
The acquisition would increase the number of HomeStreet’s retail deposit branches to five in San Diego County and 17 overall in Southern California.
“We have a strong, growing presence in Southern California, and we are excited to add another bank branch in the San Diego area,” said HomeStreet Bank Chairman, President and CEO Mark K. Mason. “This acquisition also substantially increases our commercial lending team in Southern California and adds a proven leader and his team to our San Diego operations.”
“We have enjoyed wonderful relationships with our customers whose loans and deposits are included in this transaction, and we sincerely appreciate their trust allowing us to be of service. In considering this transaction, we sought a partner that mirrors our service philosophy and are pleased to introduce our customers to HomeStreet, which will be retaining the key employees that have built and maintained the relationships with these customers,” said Alan Lane, Silvergate’s CEO.
The San Marcos location will continue to operate as a branch of Silvergate until the transaction is completed. Upon closing, the branch will become part of HomeStreet Bank.
Barclays Capital acted as Silvergate’s financial advisor for this transaction, and Breakwater Law Group acted as its legal advisor.
