Sept 14 - First PacTrust Bancorp, the holding company for PacTrust Bank and Beach Business Bank in Manhattan Beach, Calif., and The Private Bank of California, Los Angeles, have entered into a definitive agreement pursuant to which The Private Bank of California will merge into Beach Business Bank. Following the closing of the transaction, Beach Business Bank will be renamed The Private Bank of California.
The transaction is initially valued at approximately $50 million, or approximately $13 per diluted share. This represents a 27 percent premium to the most recent closing stock price for The Private Bank of California. As part of the transaction consideration, shareholders of The Private Bank of California will receive, in aggregate, 2,083,333 shares of First PacTrust common stock having a value of approximately $25 million (at $12 per share).
"The acquisition of The Private Bank of California represents a significant milestone in our stated strategy of becoming Southern California’s bank of choice for small- to mid-sized businesses, entrepreneurs and high net worth individuals throughout Southern California,” said Greg Mitchell, CEO of First PacTrust. “We are bringing together two highly complementary organizations that will enable First PacTrust to expand its Southern California footprint in attractive markets such as Los Angeles, Hollywood, Century City and Irvine.”
Robert Franko, CEO of Beach Business Bank, stated, “The Private Bank of California enjoys an outstanding reputation in the markets it serves and its management team has extensive expertise in commercial and industrial lending, private banking and business banking. I have deeply respected its strong franchise and dedicated team for several years. With its emphasis on offering superior customer service to its business banking clients, The Private Bank of California provides an excellent foundation for expanding First PacTrust’s presence in the commercial banking market.”
David Misch, CEO of The Private Bank of California, has agreed to serve as First PacTrust’s chief risk officer following the closing of the transaction. Misch said, “This transaction is great news for The Private Bank of California’s shareholders, customers, employees and the communities we serve. Joining forces will allow us to combine our talented management teams. The combination of First PacTrust’s existing business and our strong commercial and industrial, entertainment and business banking will result in a strong bank with the capital and scale to offer attractive products to customers and enhance shareholder value.”
As part of the transaction, Richard Pachulski, David Misch, Richard Smith and Nick Zappia have each entered into agreements to continue working with First PacTrust following the closing. Pachulski, who will serve as the chairman of First PacTrust’s newly formed advisory board, said, “As a founder, depositor and board member of The Private Bank of California, I am excited by this opportunity and look forward to serving as part of First PacTrust’s Advisory Board. As an investor, I am thrilled to have the opportunity to become a shareholder of First PacTrust and to participate in the numerous benefits created by this strategic combination."
About The Private Bank of California
Headquartered in Century City, Calif., with branches in Hollywood, Century City and Irvine, Calif., The Private Bank of California provides a full range of deposit and loan services tailored to meet the needs of high net worth and high income individuals, business professionals and their professional service firms, business owners, entertainment service businesses, local businesses and non-profit organizations. The Private Bank of California was founded in 2005 and currently has three branch locations and approximately $650 million in assets. For more information, visit www.tpboc.com.
About First PacTrust Bancorp
Based in Irvine, Calif., First PacTrust Bancorp Inc. is the holding company of PacTrust Bank and Beach Business Bank. On the completion of its acquisition of The Private Bank of California, First PacTrust expects to have approximately $2.2 billion in assets and operate a total of 22 full-service bank branches and, primarily through its Mission Hills Mortgage Bankers division, 23 loan production offices in California, Arizona, Oregon and Washington. PacTrust Bank gives customers convenient account access choices through 30,000 surcharge-free ATM locations nationwide, as well as mobile, online and telephone banking. In addition to providing a full range of consumer and business deposit and loan services, PacTrust Bank is one of the few institutions that offers free checking, maintaining a relationship-centric reputation built on its four core principles of service, choice, value and trust. For more information, visit www.firstpactrustbancorp.com.