“Pacific Mercantile is a strong strategic fit,” Banc of California Chief Executive Jared Wolff said in a statement. “Its size, business focus, and deposit profile perfectly align with our existing operations and will accelerate our growth and operating scale in key markets.”
Shares of Santa Ana-based Banc of California, which has a number of branches in Los Angeles County, were unchanged after the announcement. Existing Banc of California stockholders will own approximately 81% of the outstanding shares of the combined company, and Pacific Mercantile shareholders are expected to own approximately 19%. The transaction is expected to close in the third quarter.
After the $9.77 per share offer was announced, Pacific Mercantile shares jumped 24% on March 22 in after-hours trading to $10. Before the announcement, they traded at $8.06 and a $192 million market cap. Last March, the shares fell as low as $2.95.
