Quick Take
Krista Snelling, president and CEO of both Santa Cruz County Bank and West Coast Community Bancorp, will lead the combined company, which will be headquartered in Santa Cruz.
The owner of Santa Cruz County Bank is merging with 1st Capital Bank to expand the combined entity’s footprint in Monterey County and beyond.
West Coast Community Bancorp announced Monday evening that it would merge with 1st Capital Bancorp, which owns the Salinas-headquartered regional bank chain. Krista Snelling, president and CEO of both Santa Cruz County Bank and West Coast Community Bancorp, will lead the combined company, which will be headquartered in Santa Cruz.
Santa Cruz County Bank, founded in 2004, currently operates eight bank branches – five in Santa Cruz County, two in Monterey County and one in Santa Clara County. 1st Capital was founded in 2007 and operates five branches, including three in Monterey County and one each in San Luis Obispo and Santa Cruz.
For customers, it will be business as usual at both banks while the merger undergoes final legal, shareholder and regulatory approval, which Snelling expects to be completed later this year. Once that’s completed, a new name will be announced for the combined bank chain, but that’s still to be determined, she said.
The merger comes as regional banks around the country have struggled amid rising interest rates and overall economic uncertainty. Five regional banks failed in 2023, the highest number since 2017. In January, as Santa Cruz County Bank marked its 20th anniversary, Snelling told Lookout that its success was due to the strong relationship it has created with the local community. The company previously merged with Lighthouse Bank in 2019.
The new merger brings together two community-focused banks with similar business models to help grow existing markets and expand into new ones. 1st Capital’s reputation for stellar client services was another selling point, said Snelling. The combined company will also gain expanded lending capacity. Currently, Santa Cruz County Bank can make loans to a single borrower of up to $60 million; that will increase to $80-85 million after the merger’s completion. As of March 31, Santa Cruz County Bank’s assets were listed at $1.79 billion; 1st Capital holds $1 billion.
There will inevitably be some layoffs and possible branch closures due to the consolidation, but Snelling said bank leaders are still making those determinations and will be working to limit staff reductions as much as possible. Currently, Santa Cruz County Bank has around 140 employees; 1st Capital has 100.
Santa Cruz County Bank formed the holding company West Coast Community Bancorp in 2022 to give it more flexibility in the types of transactions it can offer and options for further growth, including the ability to acquire and operate other banks. In January, Snelling told Lookout the bank was very focused on growing in Monterey County, where it currently operates two branches, including one in Salinas opened last year.
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