Mechanics Bank completed its acquisition of Rabobank, a subsidiary of Rabobank Group, on Sept. 1, including Rabobank’s retail, business banking, commercial real estate, mortgage, and wealth management businesses.
The purchase price was approximately $2.1 billion.
The new entity operates under the Mechanics Bank name, with more than $17 billion in total assets and 144 branches.
Headquartered in Walnut Creek, Mechanics Bank was founded in 1905 to assist the area’s local businesses and families. Today, it is the fifth-largest California-based bank.
“We believe this strategic combination of two highly complementary franchises will unlock significant value for our shareholders, clients, employees and the many communities served by the new Mechanics Bank,” said Carl B. Webb, chairman of the board of Mechanics Bank. “We are pleased to have closed such a major transaction less than six months since announcing our acquisition plans, and we now look forward to putting the tremendous resources of this unique financial institution to work for all of our constituents.”
Webb and Gerald J. Ford are co-managing partners of the Dallas-based Ford Financial Fund, which owns 81 percent of Mechanics Bank.
John DeCero, formerly president and CEO of Mechanics Bank, and Mark Borrecco, formerly CEO of Rabobank, serve as co-CEOs of the new organization.
DeCero, a 29-year banking veteran, will oversee commercial banking, wealth management and indirect auto finance. Borrecco, with a 25-year career in financial services, will manage the retail banking and consumer lending activities of the bank.
Mechanics Bank received a rating of “Outstanding” from its primary regulator, the Federal Deposit Insurance Corporation (FDIC), for its most recent Community Reinvestment Act (CRA) examination period of May 2016 through April 2019.
More information is available at www.mechanicsbank.com.