Banc of California to Acquire Pacific Mercantile

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Banc of California to Acquire Pacific Mercantile
Jared Wolff

Banc of California Inc. said on March 22 that it will buy Costa Mesa-based Pacific Mercantile Bancorp in an all-stock transaction valued at $235 million.

“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.

This article originally appeared as "Banc of Calfornia to Buy Pacific Mercantile" on OCBJ.com on March 22, 2021.

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