Genesis Bank to Acquire Excel Bank in Beverly Hills Agreement
Genesis Bank (“Genesis” or the “Bank”) and Excel Bank, a tradename of EH National Bank (“Excel”), have officially entered into a definitive agreement for Genesis Bank to acquire Excel Bank in an all-cash transaction. This strategic move marks a significant milestone for both institutions, aiming to strengthen their market presence and enhance financial services.
Upon completion of the acquisition, Genesis Bank will remain the operating entity, continuing to uphold its mission of providing superior banking solutions. The transaction requires no additional capital due to Genesis Bank’s robust capital ratios, expected tax benefits, and the positive impact of restructuring and deleveraging Excel Bank’s balance sheet. The acquisition is expected to be highly accretive to Genesis Bank’s shareholders, further solidifying the Bank’s financial position and growth trajectory.
A Legacy of Excellence: Excel Bank’s History and Performance
Excel Bank was founded in 2005 with the goal of serving the financial needs of small businesses, entrepreneurs, multifamily and commercial real estate investors, property management companies, and homeowners’ associations throughout Southern California. Over the years, Excel Bank has built a strong reputation for offering customized banking solutions, prioritizing client service, and maintaining a community-focused approach.
As of December 31, 2024, Excel Bank reported total assets amounting to $300 million, with a loan portfolio of $238 million, deposits totaling $242 million, and a tangible common equity of $23 million. These strong financial metrics reflect Excel Bank’s prudent risk management and customer-centric banking philosophy, making it an attractive acquisition for Genesis Bank.
Strategic Advantages of the Combined Entity
The integration of Excel Bank into Genesis Bank will result in a more dynamic and competitive financial institution, offering an expanded range of services and a broader geographic footprint. Below are key highlights of the pro forma company following the acquisition:
- Prime Locations Across Southern California: The newly combined entity will operate from three strategic locations:
- Genesis Bank’s headquarters at 4675 MacArthur Court in Newport Beach, ideally positioned in Orange County near the Orange County Santa Ana Airport.
- Excel Bank’s office in Beverly Hills, referred to as the “Los Angeles Headquarters,” located at 9420 Wilshire Blvd. at Canon Dr.
- Excel Bank’s Inland Empire office in Temecula, positioned at 27720 Jefferson Ave.
- Projected Total Assets Exceeding $400 Million: The scale of the combined bank will offer increased lending capacity and enhanced service capabilities.
- Strong Capital Position: The pro forma tangible equity to tangible assets ratio is expected to exceed 14%, ensuring financial stability and resilience.
- Enhanced Earnings and Shareholder Value: The transaction is projected to be immediately accretive to earnings and tangible book value per share, benefiting Genesis Bank shareholders.
- Robust Liquidity Position: A liquidity ratio exceeding 29%, with significant off-balance sheet liquidity and minimal reliance on wholesale and brokered funding.
- Optimized Loan-to-Deposit Ratio: The pro forma loans-to-deposits ratio is expected to be approximately 90% at closing.
- Strategic Balance Sheet Restructuring: The restructuring plan is designed to optimize financial performance and position the bank for long-term growth.
Leadership Perspectives on the Acquisition
Stephen H. Gordon, Chairman and Chief Executive Officer of Genesis Bank, expressed enthusiasm about the acquisition, emphasizing the growth opportunities it presents for both institutions.
“We’re excited to announce our agreement to acquire Excel Bank and look forward to welcoming its clients and employees into the Genesis Bank family. This acquisition aligns with our strategy of building a scalable and technology-driven financial institution that delivers high-quality banking services. With our leadership team’s deep expertise in banking and acquisitions, we anticipate a seamless integration that will create added value for our clients, employees, and shareholders,” said Gordon.
He further highlighted the long-standing experience of the Genesis leadership team in executing successful acquisitions. “Through our previous roles in founding and managing financial institutions such as Opus Bank and Commercial Capital Bank, we have developed a deep understanding of the Southern California market. The addition of Excel Bank strengthens our geographic footprint and enhances our ability to serve a broader client base. We’re particularly excited about the synergies this transaction brings, which will enable us to offer more robust financial solutions to small businesses, commercial real estate investors, and entrepreneurs.”
Enhancing Client Services and Market Reach
One of the key benefits of this acquisition is the expanded service offerings for Excel Bank clients. The integration will provide access to Genesis Bank’s cutting-edge technology platform, which rivals those of larger financial institutions. Excel Bank customers will also benefit from an enhanced suite of banking products, more efficient digital banking solutions, and a stronger capital base to support lending activities.
Charles “Chuck” Thomas, CEO and Director of Excel Bank, expressed confidence in the transaction, highlighting the benefits it will bring to Excel Bank’s clients and employees.
“The combination of Genesis Bank and Excel Bank will enhance our ability to deliver top-tier banking services to our clients. Genesis Bank has demonstrated a strong commitment to innovation and client service, making this a natural fit for our customers. Additionally, this merger creates new growth opportunities for our employees, ensuring a stronger future for all stakeholders,” Thomas stated.
Commitment to Community and Economic Development
Genesis Bank has long been committed to community development and economic empowerment. Through its nonprofit affiliate, Genesis For Good Foundation, and its Genesis Bank Institute for Entrepreneurship, the Bank actively supports financial education, small business development, and economic growth initiatives.
Gordon reaffirmed Genesis Bank’s dedication to its social responsibility initiatives: “At Genesis Bank, we believe that banking should extend beyond transactions—it should contribute to economic empowerment and financial literacy in the communities we serve. Through our various community-focused programs, we remain dedicated to fostering entrepreneurship, supporting small businesses, and creating opportunities for underserved communities.”
Next Steps and Regulatory Approval
The transaction is expected to close by mid-2025, subject to regulatory approval, shareholder approval from Excel Bank, and the fulfillment of customary closing conditions. Both banks are committed to ensuring a smooth transition for clients and employees throughout the integration process.
To facilitate the transaction, Genesis Bank was advised by its legal counsel, Holland & Knight LLP, while Excel Bank was represented by attorney Richard E. Knecht.
A Transformational Step Forward
The acquisition of Excel Bank by Genesis Bank represents a transformational step in strengthening the regional banking landscape in Southern California. By combining two well-established financial institutions, the transaction will result in a stronger, more resilient, and technologically advanced bank capable of delivering exceptional financial services.
With a shared vision of growth, innovation, and community impact, Genesis Bank and Excel Bank are poised to create significant value for clients, employees, and shareholders alike. The future looks bright as the combined entity embarks on this new chapter, reinforcing its commitment to excellence and long-term success.
