Summit State Bank in Santa Rosa, Calif., is dealing with a potential hostile takeover by Big Poppy Holdings in Santa Rosa.
Big Poppy, the parent of the $5.7 billion-asset Poppy Bank, applied with the Federal Reserve for a “change in control” that would allow it to boost its 4.9% stake in the $1.2 billion-asset Summit to up to 24.99%.
It is unclear whether the application means that Big Poppy is trying to buy Summit but it could make such a transaction easier to pursue.
Khalid Acheckzai would not rule out an acquisition in a July interview with the North Bay Business Journal. At the time, he said that no merger talks were taking place.
Summit State said in a July press release that its board would review the application “and may comment on or respond to the application in due course.”
The comment period for the application ended on Aug. 21.
Such takeovers are rare.
First Citizens BancShares in Raleigh, N.C., attempted in June 2017 to take over KS Bancorp in Smithfield, N.C. The situation escalated when First Citizens filed a lawsuit – the parties would eventually reach a settlement where KS Bancorp repurchased its stock.