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CommerceWest Bank Announces Plan for Holding Company Reorganization

October 12, 2020, 08:00 AM
Filed Under: Banking

The Board of Directors of CommerceWest has approved entering into an Agreement and Plan of Reorganization and Merger (the 'Plan of Merger) with CW Bancorp and CW Interim Merger Corp., by which the Bank intends to become a wholly-owned subsidiary of Bancorp. If the transaction is approved by the Bank's shareholders and the appropriate federal and California state regulatory authorities, each of the outstanding shares of the Bank's common stock will be exchanged for one share of Bancorp's common stock. As a result, the shares of Bancorp's common stock will be owned directly by the Bank's shareholders in the same proportion as their existing ownership of Bank common stock immediately prior to the reorganization.

"We decided to undertake this transaction because we believe that this reorganization is in the best interest of our Bank and supports our long term growth strategy. The holding company structure provides us with additional corporate and capital flexibility," said Ivo A. Tjan, Chairman and Chief Executive Officer.

There will be no change in the Bank's directors or executive officers following the reorganization, and the Bancorp's directors and officers will be the same as the Bank's immediately prior to the reorganization.

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