National bank regulators have given conditional approval for the acquisition of Sacramento-based Golden Pacific Bank by fintech giant SoFi Technologies Inc.
In March last year, San Francisco-based SoFi (Nasdaq: SOFI) said it would buy Golden Pacific for $22.3 million in cash to get its national banking charter.
"With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with high-yielding interest in checking and savings, it will also enhance our financial products and services,” said SoFi CEO Anthony Noto, in a news release.
On Tuesday, the Office of the Comptroller of the Currency, the national bank regulator, gave conditional approval for the acquisition and the creation of SoFi Bank, a full-service national bank headquartered in Cottonwood Heights, Utah.
The approval is for a digital version of a traditional banking operation. The approval does not allow crypto assets or activities.
As part of the transaction, SoFi Bank is acquiring Golden Pacific Bank, a national bank insured by the Federal Deposit Insurance Corp.
SoFi said the transaction is expected to close in February. SoFi has also applied to the Federal Reserve to become a bank holding company, and therefore subject to consolidated supervision for SoFi Bank.
As part of the transaction, SoFi will contribute $750 million in capital to the bank to support its national operation, and SoFi Bank will continue to operate Golden Pacific Bank’s community banking operation with three branches in Sacramento, Live Oak and Yuba City.
SoFi has nearly 3 million members who use digital services including borrowing, saving, spending and investing. That is up from 1.8 million members less than a year ago when SoFi announced the acquisition.
As part of its conditional approval, the OCC imposed requirements that the bank maintain "specific capital contributions, adherence to an operating agreement and confirmation that the resulting bank will not engage in any crypto-asset activities or services."
Golden Pacific Bank is the primary subsidiary of bank holding company Golden Pacific Bancorp Inc. The startup holding company based in Sacramento launched its bank in 2010 by buying Gold Country Bank, a Marysville-based bank founded in 1988, and which struggled for years. Like SoFi, Golden Pacific bought Gold Country for its banking charter.
Golden Pacific Bancorp shares are thinly traded. They last changed hands in December for $2.45. Under the deal with SoFi, Golden Pacific stockholders will receive $2.55 per share in cash.
SoFi is the naming rights sponsor of SoFi Stadium, home fo the Los Angeles Chargers and Los Angeles Rams.
