The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

DMG Bancshares in California to buy Liberty Bancorp

DMG Bancshares in Irvine, Calif., has agreed to buy Liberty Bancorp in South San Francisco, Calif. 


The $207 million-asset DMG said in a press release that it will pay $31.2 million in cash for the $293 million-asset Liberty. Up to $2.9 million of additional cash could be paid to Liberty shareholders “depending on the occurrence of certain events.” 

The deal is expected to close in this summer. 

Liberty has $216 million of loans and $254 million of deposits. 

DMG said it will operate as Liberty Bank after the deal closes. 

‚ÄúLiberty is a respected banking institution which has focused on serving the needs of small and medium-sized businesses in the vibrant San Francisco Bay Area economy,” Don Griffith, DMG’s chairman and CEO, said in the release. 

“This acquisition adds to our momentum in creating a premier business bank in California,” Griffin added.

DMG, the parent company of California First National Bank, was capitalized in early 2021 with $170 million of commitments. 

Piper Sandler and Aldrich & Bonnefin advised Liberty. Skadden, Arps, Slate, Meagher & Flom advised DMG.

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