DMG Bancshares to acquire California-based Liberty Bancorp in all-cash deal

Irvine, Calif.-based DMG Bancshares Inc. agreed to acquire South San Francisco, Calif.-based Liberty Bancorp in an all-cash deal with a base consideration of approximately $31.2 million, or $35.19 per Liberty Bancorp share.

In addition to the base consideration, cash consideration of up to about $2.9 million, or $3.31 per Liberty Bancorp share, may become payable to Liberty Bancorp shareholders at or following the closing depending on the occurrence of certain events. The deal is expected to close in the summer of 2022.

Liberty Bank, a subsidiary of Liberty Bancorp, had $293 million in total assets, $216 million in total loans and $254 million in total deposits as of Dec. 31, 2021, according to the news release. Following the merger, DMG Bancshares will have total assets approaching $500 million with four locations operating under the name Liberty Bank NA.

Piper Sandler & Co. was the financial adviser and provided a fairness opinion to Liberty Bancorp's board. Aldrich & Bonnefin PLC was the legal counsel to Liberty Bancorp, and Skadden Arps Slate Meagher & Flom LLP was the legal counsel to DMG Bancshares.

To use S&P Capital IQ Pro's branch analytics tools to compare market overlap, click here. To create custom maps, click here.