NAPA -- Capitol Bancorp Limited of Lansing, Mich., is selling Napa Community Bank to Rabobank, a Roseville-based community bank serving mainly the food and agriculture industries in central California. There will be an initial cash consideration of approximately $25 million with other considerations. Rabobank is a nationally chartered bank with $10 billion in assets.
"We already have a $500 million lending portfolio in that area," said Sean Dowell, executive director of marketing for Rabobank.
"It is part of our long-term growth plan," he said. “We have a lending office in Santa Rosa and within the next several months we will look at further market presence.”
Over the last 15 months, Rabobank has opened 12 new branches in California, bringing the total to 92. The bank also has 15 financial service centers.
“By combining our two banks, we will be able to offer all our customers increased convenience with a more extensive network of branches and ATMs and also provide our full suite of banking products and services to a broader range of clients in the Napa Valley,” said Ronald Blok, chief executive officer of Rabobank.
Rabobank N.A. is backed by its parent company Rabobank Group.
“Under the leadership of President and CEO Dennis Pedisich, Napa Community Bank has consistently delivered solid performance and great customer service,” said Joseph Reid, Capitol’s chairman and CEO. “We are pleased to partner Napa Community Bank with an organization like Rabobank, which will continue the bank’s tradition of high standards for performance and service as well as its commitment to serving the Napa community.”
Rabobank expects to retain all Napa Community Bank staff, including all senior management, commercial and branch employees. Mr. Pedisich will become the Napa Valley regional president for Rabobank N.A., managing the local business for the bank.
“The entire staff is excited about this partnership with Rabobank,” said Mr. Pedisich, “as we share the same core community banking values and approach to doing business. We’ve asked our board of directors to stay on as advisory board members, further demonstrating both Rabobank’s and Napa Community Bank’s continuing commitment to our market and our customers.”
The transaction is expected to be completed sometime in 2010, subject to shareholder and regulatory approval.