Daly City-based FNB Bancorp is acquiring Valley Community Bank of Pleasanton in a deal that will create a $1 billion financial institution serving San Francisco, the Peninsula and now San Jose and the East Bay.
Valley Community Bank, started in 1998 and always led by Richard Loupe, its chief executive officer and president, has expanded from its 465 Main St. bank to Livermore and San Jose, moving its headquarters several years ago to 5000 Pleasanton Ave., across from the Fairgrounds.
One of the last small,m independently-owned banks in Pleasanton, it has encountered troubling times, including loan portfolio challenges in 2010 in the midst of a deteriorating economy. Since then, Valley has recovered and the acquisition by FNB, the parent of First National Bank of Northern California, will lead to combined assets of $1.04 billion with combined deposits of $894 million, according to Tom McGraw, chief executive of FNB Bancorp who will also head the newly-constituted bank.
Once the acquisition is finalized in the third quarter of this year, it's likely the FNB name will go on the doors of Valley's branches although Valley's headquarters could be merged into FNB's Daly City location.
Both FNB and Valley Community banks had similar beginnings. FNB opened in 1963 as the First National Bank of Daly City, started by a group of six local businessmen who felt Daly City needed its own bank.
In Pleasanton, Loupe also launched Valley Community Bank by soliciting investments from local business leaders in an effort to provide customers with an independent bank that was not a branch of a larger financial corporation.
Now, with the combined banking operation, both are now part of the same large corporate bank serving much of the Bay Area.
In addition to multiple Peninsula, San Francisco and now San Jose and East Bay locations, FNB also has branches in Pacifica, Half Moon Bay and Pescadero.