PCB Financial Merges with Northern California Bancorp and its Monterey County Bank

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Aug 21, 2024, 07:00 ET

Merger Will Infuse Capital into Monterey County Bank to Expand Offerings & Capabilities to Local Businesses

COSTA MESA, Calif. and MONTEREY, Calif., Aug. 21, 2024 /PRNewswire/ -- PCB Financial, Inc. ("PCB") and Northern California Bancorp, Inc. ("NCB") jointly announce today the completion of a transaction under which the two entities have merged. NCB and its wholly owned subsidiary Monterey County Bank ("MCB") are now wholly owned subsidiaries of PCB. The financial details of the merger were not disclosed, and shareholders of NCB will receive cash and/or stock in PCB as part of the transaction.

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"This is a really exciting time for Monterey County Bank and the businesses we serve," said Charles Chrietzberg, longtime chairman and CEO of Monterey County Bank. "Together with this new team, we'll be able to offer our clients and the business community more resources and banking products to help their businesses grow. We will always be a bank who puts our community first, and this transaction brings the right capital and leadership to strengthen our ability to support this great community of businesses."

The merger transitions NCB and Monterey County Bank into a privately held bank owned by a limited number of shareholders, and its shares are no longer publicly traded. Chrietzberg, who led the bank for more than 30 years, has retired as CEO and from chairing the Board. PCB will form a new board as well as a new advisory board, and has named Chrietzberg chairman of the advisory board where he will maintain his relationships and support the future growth of the bank.

"We have been looking for the right opportunity to invest in a bank where we can make a difference for its clients," said Anand Gala, chairman and CEO of PCB Financial. "We have the team, the resources and the experience to build on the best part of Monterey County Bank and empower the businesses in the community."

In the first few weeks after the merger, Monterey County Bank will significantly increase its lending limits, offer loans on investment properties and owner-occupied buildings, introduce new lines of credit and other short-term working capital solutions, and roll out new treasury products including remote deposit capture.

"We want to move quickly to provide the businesses in the community more of what they need," said Gala. "This initial product roll out will make a big impact for businesses, and give our new team the opportunity to strengthen relationships with clients and other members of the community while they learn how else we can customize our solutions to their needs."

PCB has appointed new leadership to lead strategic growth at the bank while supporting the needs of the community. PCB has named a new chief executive officer, Bill Wilson who is a Northern-California native with 40 years in banking and finance, and specializes in using bank products to help small businesses grow. PCB also installed Brian Constable as the new chief credit officer who brings 36 years of community banking experience with a unique ability to customize bank products to client needs. Lastly, PCB has appointed John Shindler as chief financial officer who brings nearly 30 years of experience in stabilizing and growing community banks.

"Together, we will leverage our combined experience to help move businesses and community organizations forward in the region," said Chrietzberg. "Monterey County Bank will become a more strong, nimble and customizable banking partner for the community and I'm excited to work alongside this team."

ABOUT NORTHERN CALIFORNIA BANCORP & MONTEREY COUNTY BANK
Northern California Bancorp, Inc. (OTC: NRLB) was publicly traded bank holding company that engaged in commercial banking through its wholly owned subsidiary Monterey County Bank. The bank is the oldest locally owned, locally managed bank in Monterey County, opening its doors in May 1977. It specializes in all aspects of business banking, including being a leading SBA Lender in Monterey County. Monterey County Bank has 4 branches – Monterey, Pacific Grove, Carmel Rancho and Salinas.

ABOUT PCB FINANCIAL, INC
PCB Financial is a privately held investment firm based in Southern California and made up of several local investors who specialize in corporate turnarounds, banking , finance, restaurants, automotive dealerships, real estate development and agriculture. PCB takes a purposeful approach to its investments with a mission of helping communities thrive.

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding PCB, NCB, the proposed merger, and the combined company that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements involved inherent risks, uncertainties, and contingencies, many of which are difficult to predict and are generally beyond the control of PCB, NCB, MCB and the combined company. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to: adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; MCB's financial condition may deteriorate resulting in adverse action by regulators with authority over PCB, NCB and/or MCB; the personnel changes/retention might not proceed as planned; and the combined company might not perform as well as expected. Forward-looking statements speak only as of the date they are made.

SOURCE PCB Financial Inc.