Century City’s Private Bank of California on Wednesday said that it has agreed to be acquired by First Pactrust Bancorp Inc., the Irvine holding company for PacTrust Bank and the South Bay’s Beach Business Bank. The stock deal is valued at about $50 million.
The definitive agreement approved by the boards of both companies calls for Private Bank of California to merge into Beach Business Bank, with the merged banks will be branded Private Bank of California. First PacTrust closed its $39 million acquisition of Manhattan Beach-based Beach Business Bank in June.
The transaction further extends First PacTrust’s presence in the county to the city of Los Angeles, Hollywood and Century City. After the deal closes, the company expects to have about $2.2 billion in total assets, with 22 branches in Los Angeles, Orange, San Diego and Riverside counties and 23 loan production offices in California, Arizona, Oregon and Washington.
Private Bank shareholders will receive about 2.08 million shares of First PacTrust common stock having a value of about $25 million. That values Private Bank’s stock at about $13 a share, a 27 percent premium to the closing price on Tuesday.
“The acquisition of the Private Bank of California represents a significant milestone in our stated strategy of becoming Southern California’s bank of choice for small- to mid-sized businesses, entrepreneurs and high net worth individuals throughout Southern California,” said First PacTrust Chief Executive Greg Mitchell in a statement.
Pending approval by shareholders and regulators, the deal is expected to close in the close during the second quarter of next year. Private Bank board members and officers, representing more than 35 percent of the outstanding shares, already have agreed to vote for the transaction.
First PacTrust said that one of its board members, Steven Sugarman, has been named co-CEO, sharing the title with current Chief Executive Greg Mitchell. Mitchell remains chief executive and president of PacTrust Bank. After the mergers closes, David Misch, chief executive of Private Bank, has agreed to serve as First PacTrust’s chief risk officer.
Private Bank shares were up more than 21 percent to $12.40 in midday trading on the Over-the-Counter Bulletin Board. First PacTrust shares were unchanged at $12.12 on the Nasdaq.