BayCom Corp, Walnut Creek, Calif., is moving into Colorado with its deal to buy TIG Bancorp in a cash and stock transaction valued at approximately $39.4 million.
After the deal closes in the fourth quarter, TIG will be merged with and into BayCom, creating a $2 billion company with $1.4 billion in loans and $1.8 billion in deposits. The agreement also calls for the merger of First State Bank of Colorado with and into United Business Bank, which will have 20 locations in California, two in Washington, six in New Mexico and seven in Colorado.
At March 31, TIG had approximately $229.0 million in assets, $146.2 million in loans, $198.4 million in deposits and $29.5 million in shareholder’s equity. First State Bank of Colorado has branches in Arapahoe, El Paso, Custer and Delta Counties.
TIG was originally formed in 2017 to buy First State Bank. It had previously been in talks for an acquisition by PGC Bancorporation earlier this year, but that deal fell through when PGC failed to raise the necessary equity according to the Denver Business Times.
“We are very happy to join BayCom and believe our combination with United Business Bank will provide significant value to our shareholders, clients and employees,” said Jeffrey Walker, TIG president and CEO. “We also believe this is a natural fit which increases lending capabilities, expands capital resources and provides a more expansive product offering in our Colorado business communities.”
Walker will join United Business Bank as a market president post-merge.
“From a strategic perspective, we think First State Bank of Colorado is a great fit,” said George Guarini, President and CEO of BayCom. “The merger will provide United Business Bank with a significant presence in Colorado, including entry into the attractive Denver and Colorado Springs markets.”
BayCom and UBB were assisted by Dave Muchnikoff of Silver, Freedman, Taff & Tiernan, LLP for legal services and Greg Gersack of Janney Montgomery Scott LLC for investment banking services.
TIG and First State Bank of Colorado were assisted by John S. Zeilinger and Kevin P. Tracy of Baird Holm LLP, for legal services and Adam Fiedor of GLC Advisors & Co., LLC for investment banking services, and Tom Mecredy of Vining Sparks IBG, LP issued a fairness opinion.