SAN DIEGO - California Bank & Trust (CB&T), part of Zions Bancorporation (NASDAQ: NASDAQ:ZION), has announced an agreement to acquire four FirstBank branch locations in Palm Desert and Indio, California. The acquisition includes approximately $730 million in customer deposits and $420 million in loans and is expected to be finalized in the first quarter of 2025, pending regulatory approval and customary closing conditions.
The deal will increase CB&T's footprint in the Coachella Valley, adding around 15,000 new customers and boosting its market share to 7% with a total of six branches in the region. CB&T President and CEO Eric Ellingsen expressed enthusiasm for the growth opportunity, highlighting the addition of a skilled team and a significant customer base.
FirstBank, headquartered in Lakewood, Colorado, has been an industry leader in digital banking since 1963. The company has maintained a strong philanthropic presence, contributing over $90 million to charitable causes since 2000. FirstBank CEO Kevin Classen emphasized the importance of a smooth transition for clients and employees, ensuring continued high standards of service.
The branches involved in the transaction will operate under FirstBank until the deal's completion, after which they will rebrand as California Bank & Trust locations. Both banks are dedicated to providing a seamless transition for customers and staff, with a resource page already established to assist FirstBank customers during the changeover.
Morgan Stanley & Co. LLC serves as the financial advisor to FirstBank for this transaction. This move is part of CB&T's ongoing strategy to grow its presence in California, where it has been recognized repeatedly for its banking services, including being voted "Best Bank" by readers of the San Diego Union-Tribune for 14 consecutive years.
The information for this article is based on a press release statement.
In other recent news, Zions Bancorp has seen several significant developments. Jefferies and Wells Fargo have revised their price targets for Zions Bancorp to $49 and $50, respectively, maintaining a Hold rating in both cases. According to Jefferies, Zions Bancorp is expected to see revenue improvement, while Wells Fargo's decision is due to the challenges posed by the current interest rate environment.
Simultaneously, Zions Bancorp has declared dividends for both common and preferred shareholders, demonstrating its financial stability. The company's board declared a quarterly dividend of $0.41 per common share, with additional dividends announced for its perpetual preferred shares. This follows Zions Bancorporation's reported 2023 net revenue of $3.1 billion.
Argus Research has also adjusted its stance on Zions Bancorporation, downgrading its rating from Buy to Hold due to valuation concerns. This decision was made despite Zions Bancorporation's reported increase in second-quarter earnings per share and stable financial results.
Zions Bancorporation has also reported steady financial results for the second quarter of 2024, with net earnings of $190 million and diluted earnings per share of $1.28. The company anticipates a slight to moderate increase in financial performance in Q2 2025 compared to Q2 2024. These are the recent developments in the company.
InvestingPro Insights
In light of Zions Bancorporation's (NASDAQ: ZION) recent announcement to expand its California Bank & Trust footprint, key metrics from InvestingPro provide a snapshot of the company's financial health and market performance. Zions Bancorporation has shown resilience with a commendable Price to Earnings (P/E) Ratio of 11.44, which is in line with the industry average, suggesting that the stock may be reasonably valued given its earnings.
InvestingPro data also reveals a solid dividend yield of 3.42%, reflecting the company's commitment to returning value to shareholders. This aligns with one of the InvestingPro Tips highlighting that Zions Bancorporation has raised its dividend for 11 consecutive years, indicating a reliable income stream for investors. Moreover, the company has maintained dividend payments for an impressive 54 consecutive years, underscoring its financial stability and dedication to shareholders.
Additionally, Zions Bancorporation has experienced a significant 1 Year Price Total Return of 46.61%, which is an indicator of the stock's robust performance over the past year. This complements another InvestingPro Tip pointing out the company's strong return over the last three months, suggesting that Zions Bancorporation has been navigating the market effectively.
For readers interested in further insights, InvestingPro offers additional tips for Zions Bancorporation, which can be found at https://www.investing.com/pro/ZION. These tips provide a deeper understanding of the company's financial outlook and investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.