Bend, Ore.-based High Desert Bank CEO Steve Ferber said the bank will merge with Pasadena, Calif.-based Right Start Mortgage Inc. in a stock swap, The Bulletin reported.
High Desert will become the surviving legal entity in the transaction, according to the report. The combined company's value will be $6.6 million, with nearly $40 million in assets.
David Williams and Buster Williams, Right Start's owners, will own about 85% of High Desert upon the deal's closing, which is expected by June 30, the news publication said. Buster Williams will serve as chairman and continue his role as division president, while David Williams will become division vice president. High Desert Chairman Zan Hamilton will continue to serve on the board.
The deal is pending approval from shareholders and the Office of the Comptroller of the Currency. A shareholders meeting is scheduled for May 3, according to the report.
High Desert had approximately $1.2 million in capital and $25.8 million in assets at the end of 2016. The company engaged Sandler O'Neill in May 2016 to find a merger partner, the report said.