Pacific Mercantile Bancorp and Banc of CA merge in $ 235 million deal – Orange County Register
Pacific Mercantile Bancorp is merging with Santa Ana-based Banc of California in an all-stock transaction valued at $ 235 million, or $ 9.77 per share, according to the companies.
When it gets regulatory approvals, the newly merged bank would have assets of around $ 9.5 billion.
Costa Mesa-based Pacific Mercantile Bancorp, a commercial bank with seven offices in Southern California, had $ 1.6 billion in total assets, $ 1.2 billion in gross loans and $ 1.4 billion of total deposits at December 31. The bank also had $ 229.7 million in paychecks. Protection loans outstanding as of December 31.
Under the terms of the agreement, which was approved by the boards of directors of both banks, holders of Pacific Mercantile common stock will receive 0.5 Banc of California common share for each Pacific Mercantile common share they possess.
Existing Banc of California shareholders would own approximately 81% of the outstanding shares of the combined company, and Pacific Mercantile shareholders are expected to own approximately 19%.
Banc of California has some $ 7.9 billion in assets and 36 offices, including 29 full-service branches in Southern California
The merger is expected to be finalized in the third quarter of 2021, subject to closing conditions.