Rabobank Group

20-8-2010 | Press Releases

Rabobank, N.A. announced it has acquired all deposits and certain assets and liabilities of Butte Community Bank and Pacific State Bank from the Federal Deposit Insurance Corporation (FDIC), effective immediately. Part of global financial services leader Rabobank Group, Rabobank, N.A. is a $10.2 billion community bank providing full retail and commercial banking services primarily in non-metropolitan markets across a 700-mile expanse of California.

The transaction is a significant step forward in Rabobank, N.A.’s growth strategy and is highly synergistic, combining community banks with similar business lines and little geographic overlap. The addition of the banks significantly expands Rabobank’s footprint, creating a 120-branch retail banking franchise which extends from the Imperial Valley up through the Central Valley and throughout the Central Coast. The acquisition also gives Rabobank a well-established platform from which to further expand its business in areas it has targeted for growth.

Rabobank to continue tradition of community-involved banking
Butte Community Bank and Pacific State Bank customers should continue to conduct their banking as they have in the past and have confidence in the safety of their deposits transferred to Rabobank, N.A. Butte Community Bank and Pacific State Bank deposits are now deposits with Rabobank, N.A., and continue to be insured up to FDIC limits.

Rabobank, N.A. is backed by the financial strength and stability of AAA rated Rabobank Group, one of the world’s safest banks. Rabobank Group and Rabobank, N.A. are well-capitalised and meet the needs of customers without government assistance. Rabobank Group and Rabobank, N.A. are not participating in the U.S. government’s Troubled Asset Relief Program nor any assistance programs operated by other governments.

"We are pleased to welcome Butte Community Bank and Pacific State Bank customers to Rabobank," said Ronald Blok, CEO of Rabobank, N.A.

"Now as customers of Rabobank, they can have confidence in the safety of their deposits and the soundness of their bank. These organisations have much in common with Rabobank, most importantly a strong commitment to community banking, personalised service, and local investment. By combining these franchises, we will be able to offer all our customers increased convenience with a more extensive network of branches and ATMs, and able to provide Rabobank banking products and services to a broader range of clients. We’ll do this while continuing to meet the high standards for service excellence and community engagement to which Rabobank and Butte Community Bank and Pacific State Bank have long been committed."

Butte Community Bank and Pacific State Bank customers will soon receive more information from Rabobank about the transition. The banks’ branches are now operated by Rabobank, N.A. and are being rebranded with the Rabobank name and logo. Rabobank plans to complete the system and franchise integration next year.

"The transaction has tremendous strategic value," Blok continued, "in that it gives Rabobank an immediate and broad presence in communities where we have planned to grow and where we can increase our service to local businesses, farmers, and individuals. In addition, these banks are a highly complementary geographic fit. This is a great opportunity for us to deepen our existing customer and community relationships and to build new ones through continued investments that enhance our customers’ experience."

About Butte Community Bank
Butte Community Bank was a $499 million community bank based in Chico with 14 branches concentrated in Butte County and the surrounding counties. Established in 1990, the bank offered insurance, investment services and payroll services along with traditional banking products.

About Pacific State Bank
Pacific State Bank was a $312 million community bank based in Stockton with 9 branches primarily in San Joaquin County and the Sierra foothills, with an additional branch in the Bay area. Pacific State Bank was founded in 1987 to serve the local business community.

About Rabobank in California
Rabobank began its California retail banking operations with the December 2002 acquisition of Valley Independent Bank and subsequently more than doubled that bank’s assets and capital. In January 2006, Rabobank acquired Community Bank of Central California, adding 14 branches to its then 26-branch network. The January 2007 acquisition of Mid-State Bank & Trust added 41 branches to Rabobank, N.A.’s franchise. In 2009, Rabobank, N.A. opened eight branches in the Modesto-Merced area and one in Carpinteria. In 2010, the bank acquired Napa Community Bank and will open new branches in Visalia, Tulare and Bakersfield (2) later this year.