FULLERTON BANK MERGES

The following e-mail message was forwarded to me from an alum. I have Richard Gregory's permission to post his comment that came with the public announcement.

FULLERTON, Calif.--(BUSINESS WIRE)-- RMG Capital Corporation (“RMG”) (Pink sheets:RMGC.pk - News) and Opus Bank announced today that they have entered into a merger agreement pursuant to which Opus Bank will acquire RMG and its bank subsidiary, Fullerton Community Bank (collectively “Fullerton”), in an all cash transaction. Under the terms of the agreement, Opus Bank will pay a total of $50 million in cash to the holders of RMG’s common stock. The RMG, Fullerton, and Opus Bank Boards of Directors have unanimously approved the terms of the agreement and voted in favor of the transaction. The terms of the merger agreement also call for Opus Bank to assume all of RMG’s obligations with respect to trust preferred securities issued by RMG’s trust subsidiaries and the outstanding series of RMG preferred stock, which series is to be redeemed in accordance with its terms.

This is the comment from Richard that came with the above announcement:

While well capitalized, the company needed an infusion of capital to be ready for the brave new world of banking (Government pushing for larger and better capitalized banks) and to meet the growing needs of its customers and face the continuing economic uncertainty. Unfortunately, because of the depressed market for bank shares in general, merger or sale was the only way to do it and be fair to our long time shareholders. Tom (and Carl and Dad) did a great job in keeping the Bank going over the years when many others failed (where is Downey and others) and Tom made it profitable again under the tough circumstances of the last few years.


End of an era for sure. My granddad and namesake, former mayor of Fullerton, bought me my first shares in 1941. But there were 200 plus other shareholders to consider and the board had the legal obligation to take the best offer, while taking account of the interests of the employees, the customers and the community. I, like most others, have mixed feelings since we were part of the Bank and the community for all of my lifetime.