| Tuesday, Global Consumer Acquisition Corp., or GCAC, (GHC) said that it has signed deals for concurrent acquisitions of Nevada bank franchises of Colonial Bank, a subsidiary of The Colonial BancGroup, Inc. (CNB), and of 1st Commerce Bank, a de novo Nevada bank formed by Capitol Bancorp Ltd. (CBC) and local Nevada executives.
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| | | {loadposition contentad} | | | | | Post-closing, GCAC will be re-named Western Liberty Bancorp, or WLB. WLB will become a bank holding company and its banking operations will be conducted through its newly acquired subsidiary, which will retain the 1st Commerce Bank name. 1st Commerce carries a Nevada bank charter under which the combined entity will continue to operate. The proposed transaction has received the necessary approvals from the respective board of directors of the entities involved in the transactions, and is subject to regulatory approvals and other customary closing conditions. Closure would be driven by the timing of regulatory approvals. The new 1st Commerce Bank will have 22 branch locations in the State of Nevada. WLB will have about $477 million of gross loan assets, $320 million of transaction account deposits and $214 million in time deposits, with residual brokered deposits of less than $13 million. WLB would focus on business and commercial real estate lending, consumer lending, trade finance and depository products. WLB, through GCAC's management oversight, is expected to oversee the credit processes of 1st Commerce Bank. As part of deal, GCAC said it had the opportunity to select which assets of Colonial Bank it would acquire and the acquisitions will include about $440 million of loans and about $492 million in deposits. GCAC engaged Crowe Horwath LLP, Proskauer Rose LLP and Brownstein Hyatt Farber Schreck, LLP to assist in reviewing the loan portfolios of both Colonial's Nevada Region and 1st Commerce Bank. Pursuant to closure, Mark Daigle, who served as president/chief executive officer of Colonial Bank's Nevada operations, will serve as president and chief executive officer of 1st Commerce Bank, and will serve on the Board of WLB. Jason Ader, will serve as chairman and chief executive officer of WLB and Chairman of 1st Commerce Bank. Daniel Silvers will serve as president of WLB and will serve on WLB's Board. Laus Abdo will serve as chief operating officer of WLB. In addition, Hayground Cove Asset Management and GCAC have entered a financing arrangement to provide Hayground Cove with commitments of up to $140 million, with GCAC committing to purchase the shares at Hayground's basis post-closing. CBC closed Monday's regular trading session at $1.95, CNB at $0.63. and GHC closed at $9.71.
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