First Foundation Inc. of Irvine announced Tuesday the acquisition of PBB Bancorp of downtown in an all-stock deal worth approximately $106 million.
PBB Bancorp is the parent company of state-chartered Premier Business Bank, Premier Bank of Palos Verdes, First Mountain Bank and a Small Business Administration loan center in Torrance. The entities have $587 million in total assets. Premier Business Bank will be merged into First Foundation Bank, a subsidiary of First Foundation, after the deal closes.
“We are pleased to announce this strategic acquisition,” said Scott Kavanaugh, chief executive of First Foundation. “Premier Business Bank has built a reputation as a strong banking partner for business owners and real estate investors, which makes it a great fit for First Foundation.”
PBB Bancorp shareholders receive 1.05 shares of First Foundation common stock in exchange for each share of PBB Bancorp as part of the deal. The stock deal’s value of roughly $106 million is based on First Foundation’s common stock price that closed Monday, Dec. 18 at $19.04, and the value per share for a PBB Bancorp shareholder of $19.99. The final value of the merger will fluctuate based on First Foundation’s common stock price, the company said.
"In entering into this agreement, Premier Business Bank believes that it has found a strong partner in First Foundation,” said John Polen, president and chief executive of Premier Business Bank. “Its platform of business and personal banking, as well as private wealth management solutions, present greater opportunities for our clients going forward.”
First Foundation operates in both the banking and wealth management space, and the merger marks its fifth acquisition since 2012. First Foundation Bank’s total assets after merging with Premiere Business Bank will be approximately $4.7 billion.
The deal is projected to finalize in the second quarter of 2018 pending approval of shareholders and bank regulatory authorities.