PBB Bancorp, the parent company of downtown L.A.’s Premier Business Bank, announced late Thursday that it has received final approval from regulators for its merger with Big Bear Lake’s First Mountain Bank.
The Federal Reserve, California Department of Business Oversight and Federal Deposit Insurance Corp. have all rubber stamped the merger. The deal is projected to close in the first quarter of 2016, PBB Chief Executive John Polen said in a Thursday press release.
“I am pleased that the merger of our two community banks is moving closer to fruition,” First Mountain Chairman Vince Smith said in the release.
Both banks are relatively small and could see a merger as a way to share compliance costs, which have been grown in the wake of tightened bank regulations. That’s been a factor in several recent small bank deals, including the sale late last year of Covina’s Simplicity Bancorp to Seattle thrift HomeStreet Inc.
Premier Business Bank, which had $252 million in assets as of June 30, has branches in downtown Los Angeles and Rolling Hills Estates and a loan office in Torrance. First Mountain Bank, with $139 million in assets, has branches in Big Bear Lake, Running Springs and Lucerne Valley.