DMG Bancshares, Inc. entered in an agreement to acquire California First National Bank from California First National Bancorp (OTCPK:CFNB) on October 16, 2020. Under the terms of the agreement, the Bank will dividend all leases and certain other assets to the company and DMG will pay a purchase price equal to the remaining equity capital ($12.6 million on February 26, 2021) plus $2.5 million. DMG will take over Bank operations at the Bank's current offices in Irvine, and Bank employees engaged in customer service and deposit operations are expected to remain with the Bank following the sale. Employees involved in lease origination and portfolio management will transition back to California First Leasing. The Bank's deposit customers will not be impacted by this transaction. The transaction is subject to customary closing conditions and obtaining the necessary regulatory approvals, the sale is expected to be completed during the first half of calendar 2021. The transaction was approved by Federal Reserve and OCC in November and was approved in December and January, respectively. Sheppard, Mullin, Richter & Hampton LLP served as legal counsel to California First National Bancorp, and Skadden, Arps, Slate, Meagher & Flom LLP, Duane Morris LLP served as legal counsel and Keefe, Bruyette & Woods acted as financial advisor to DMG.

DMG Bancshares, Inc. completed the acquisition of California First National Bank from California First National Bancorp (OTCPK:CFNB) for $15.1 million on February 26, 2021.