Genesis Bank to acquire Excel Bank in strategic expansion across Southern California

Genesis Bank has entered into a definitive agreement to acquire Excel Bank, a tradename of EH National Bank, in an all-cash transaction that is expected to double its asset size and expand its reach across Southern California. The acquisition will allow Genesis Bank to absorb all of Excel Bank’s assets and operations while continuing to operate under the Genesis Bank name. The deal strengthens the bank’s market position in key financial hubs, including Orange County, Los Angeles County, and Riverside County.

The transaction is structured to be immediately accretive to Genesis Bank’s shareholders, leveraging tax benefits, balance sheet restructuring, and deleveraging strategies to optimize financial performance. With no additional capital required for completion, the acquisition highlights Genesis Bank’s strong capital position and disciplined approach to expansion.

What Are the Key Details of the Excel Bank Merger?

Excel Bank, founded in 2005, has built a reputation as a trusted community bank catering to small businesses, real estate investors, and property management firms. As of December 31, 2024, the bank reported $300 million in total assets, $238 million in loans, $242 million in deposits, and $23 million in tangible common equity. By integrating Excel Bank into its operations, Genesis Bank will surpass $400 million in total assets, significantly increasing its lending and deposit capabilities.

The merger will bring together three prime banking locations, strengthening Genesis Bank’s presence across Southern California. The bank’s headquarters in Newport Beach, situated near Orange County Santa Ana Airport, will continue to serve as the primary corporate office. In addition, Genesis Bank will establish a Los Angeles headquarters in Beverly Hills and an Inland Empire headquarters in Temecula. These locations will provide increased access to clients and businesses seeking high-quality financial services.

Why Is This Acquisition a Strategic Move for Genesis Bank?

Genesis Bank’s acquisition of Excel Bank is a calculated move aimed at enhancing financial strength and expanding market presence. The merger is expected to increase the bank’s liquidity, improve operational efficiencies, and reinforce its balance sheet. A tangible equity-to-assets ratio exceeding 14% will provide a solid foundation for future growth, while a liquidity ratio of over 29% will ensure financial flexibility. With a loans-to-deposits ratio of approximately 90%, Genesis Bank will maintain a strong lending capacity to support small and mid-sized businesses, entrepreneurs, and commercial real estate investors.

By restructuring Excel Bank’s balance sheet at closing, Genesis Bank aims to achieve top-tier financial performance while maintaining a conservative risk approach. The ability to generate strong earnings without reliance on wholesale or brokered funding demonstrates the bank’s commitment to sustainable growth.

What Are the Leadership Perspectives on the Acquisition?

Stephen H. Gordon, Chairman and CEO of Genesis Bank, highlighted the strategic benefits of the acquisition, emphasizing how the merger aligns with the bank’s long-term vision. He expressed confidence in the bank’s ability to integrate Excel Bank’s operations smoothly while delivering enhanced financial services to clients across Southern California. He noted that Genesis Bank was built for scalable growth, combining a veteran leadership team with a technology-driven platform designed to rival the capabilities of major financial institutions.

Gordon also emphasized that the merger presents an opportunity to expand Genesis Bank’s existing relationships with small business owners, entrepreneurs, and commercial real estate investors. He underscored the bank’s extensive experience in acquisitions, having successfully founded and led multiple financial institutions in the past, including Opus Bank and Commercial Capital Bank.

Charles “Chuck” Thomas, CEO and Director of Excel Bank, expressed optimism about the acquisition, stating that the combination of Genesis Bank and Excel Bank will enhance service offerings and create new opportunities for employees. He noted that Genesis Bank’s focus on technology-driven banking solutions and client service excellence aligns with Excel Bank’s longstanding commitment to providing high-quality financial products.

How Will the Excel Bank Merger Strengthen Market Presence in Southern California?

The acquisition strengthens Genesis Bank’s standing in the competitive Southern California banking sector. The integration of Excel Bank’s well-established Los Angeles and Temecula offices will provide Genesis Bank with a broader customer base and greater operational reach. This expansion enhances the bank’s ability to serve diverse communities, including commercial real estate investors, small business owners, and property management firms.

Excel Bank has spent nearly two decades building strong client relationships, and the merger allows Genesis Bank to integrate these accounts into its advanced banking infrastructure. By leveraging a combination of digital-first solutions and personalized service, Genesis Bank will enhance its reputation as a leading financial institution catering to both traditional and tech-savvy clients.

As competition intensifies in the banking industry, financial institutions must continuously innovate to remain relevant. Genesis Bank’s state-of-the-art technology platform, combined with its focus on scalable growth, positions it for long-term success. By acquiring Excel Bank, the company solidifies its market position and lays the foundation for further expansion.

What Role Will Community Impact Play in Genesis Bank’s Future?

Beyond financial performance, Genesis Bank remains committed to community impact and economic development. Through the Genesis For Good Foundation, the bank actively supports entrepreneurship, financial education, and business development initiatives. The merger with Excel Bank will extend these efforts, allowing Genesis Bank to provide increased access to financial resources for underserved communities.

The Genesis Bank Institute for Entrepreneurship will continue to play a vital role in fostering business growth, offering tailored financial solutions to startups and small enterprises. This commitment to community engagement reinforces Genesis Bank’s identity as a socially responsible institution dedicated to supporting economic mobility.

What Are the Next Steps for the Genesis Bank Acquisition?

The transaction is expected to close by mid-2025, subject to regulatory approvals and shareholder consent. Genesis Bank was advised in the transaction by Holland & Knight LLP, while Excel Bank was represented by legal counsel Richard E. Knecht. Once finalized, Genesis Bank will focus on a seamless integration process, ensuring that clients experience uninterrupted service.

The financial sector will be closely watching how the newly expanded Genesis Bank positions itself in the market. With a clear growth strategy, strong financial metrics, and a deep commitment to technological innovation, the bank is poised to solidify its position as a leading financial institution in Southern California.