Is RaboBank Taking Over Rural California?

    In 2002, Rabobank had just 12 branches in California. Today the Bank, which is largely known for its agricultural lending, has 40 branches and 6 loan centers.
    On November 2, 2006 Rabobank announced its plans to acquire Mid-State Bank & Trust. If their application is submitted and approved, the Bank will double its branch network to 81 branches and 13 commercial loan centers.
    Rabobank is a Dutch financial institution that focuses on community banking and agricultural finance. In 2002 Rabobank acquired Valley Independent Bank. Then in 2006 the Bank acquired Community Bank of Central California.
    Today Rabobank has $4.8 billion in assets and $3.8 billion in deposits. Their branch network extends 600 miles, from the Imperial Valley through the Central Valley and up to the Sacramento area. It is the 30th largest financial institution in California with headquarters in El Centro.
    Mid-State Bank & Trust is an independent community bank serving San Luis Obispo, Santa Barbara, and Ventura counties. Mid-State Bank & Trust has total assets of $2.4 billion and total deposits of $2 billion. It has 41 retail offices and 7 commercial loan centers which serve more than 100,000 households.
    While Rabobank's lending is heavily focused on agriculture (40% of their portfolio), Mid-State’s portfolio is more evenly distributed amongst commercial real estate, construction, consumer loans, and single-family residential real estate.
    Rural California is seeing more and more consolidations amongst its financial institutions. Banks like Westamerica, Rabobank and Umpqua continue to acquire banks throughout the state.