Central Valley Community Bancorp to Acquire Folsom Lake Bank

FRESNO, CA and SACRAMENTO, CA--(Marketwired - Apr 27, 2017) - Central Valley Community Bancorp (Company), together with its wholly owned subsidiary, Central Valley Community Bank (Bank) (NASDAQ: CVCY), a bank holding company headquartered in Fresno, California, and Folsom Lake Bank (OTCQB: FOLB), headquartered in Folsom, California, jointly announced today that a definitive merger agreement has been signed by both parties. Under the terms of the agreement, Folsom Lake Bank, with three full-service branches located in Folsom, Rancho Cordova, and Roseville, will merge with Central Valley Community Bank. The transaction is subject to customary closing conditions, including regulatory approvals and Folsom Lake Bank shareholder approval. The Central Valley Community Bancorp and Folsom Lake Bank Boards of Directors have unanimously approved the transaction, which is expected to close in the fourth quarter of 2017.

As more fully described in the definitive merger agreement, and the investor presentation which is attached, Central Valley Community Bancorp will acquire Folsom Lake Bank in a stock merger in which the Folsom Lake Bank shareholders will be entitled to receive 0.80 shares of Central Valley Community Bancorp stock per Folsom Lake Bank share. Central Valley Community Bancorp will assume the stock option plan and outstanding stock options of Folsom Lake Bank as part of the transaction. Based on the closing price of Central Valley Community Bancorp on April 27, 2017, the fully diluted transaction consideration is $33.6 million, or $18.74 per Folsom Lake Bank common share. However, the deal value will fluctuate with changes in Central Valley Community Bancorp's stock price through the closing date. Central Valley Community Bancorp expects the transaction will be 1.8% dilutive to tangible book value per share initially resulting in tangible book value earnback of less than 2.5 years, 3% accretive to earnings per share in 2018 and an IRR greater than 15%.

The Central Valley Community Bancorp Board of Directors and the Central Valley Community Bank Executive Management team, led by James M. Ford, President and CEO, will continue to lead the combined team of professional bankers. Robert Flautt, President, Chief Executive Officer and Director of Folsom Lake Bank, will join Central Valley Community Bank through a transition period.