Centennial Beneficial Corp. of Orange said Thursday that it has signed a tentative agreement to purchase Sacramento Valley Bank, with four offices and assets of $67 million, in the second major acquisition announced by the fast-growing financial services holding company in the past year.
The purchase, along with the soon-to-be-completed $10.75-million acquisition of Sunwest Bank of Tustin, would more than quadruple the 4-year-old diversified holding company's assets to about $277 million.
Centennial Chairman John Joseph declined to disclose terms of the proposed acquisition but indicated that the price would range from $3 million to $7 million. A consultant who looked at the bank for a potential buyer said it has a sizable number of problem loans, which could make it difficult for the seller, Central Pacific Corp. of Bakersfield, to justify a price much higher than the bank's $3.5-million book value. Sacramento Valley has been on the market about a month, according to Central Pacific.
Centennial, with about $60 million in assets, owns 75% of Sacramento First National Bank, of which Sacramento Valley would become a subsidiary, and is sole owner of a thrift and loan association, a mortgage company and two consumer finance companies, all in Orange County.