First PacTrust Bancorp, parent of Chula Vista-based Pacific Trust Bank, continues its expansion, announcing Aug. 31 that it has agreed to acquire Beach Business Bank of Manhattan Beach, with $304 million in assets, for $9.07 per diluted share or an aggregate $37.4 million based on recent financials.
First PacTrust, which raised $60 million in a private stock placement last year, is in the process of acquiring Gateway Business Bank, a $187 million asset lender based in Cerritos. That deal is expected to close later this year. Combined with the recently proposed acquisition, Pacific Trust Bank would have about $1.3 billion in total assets, 18 branches in San Diego, Orange, Los Angeles and Riverside counties, and 23 loan production offices in California, Arizona, Oregon and Washington, the company said.
First PacTrust said because it raised $27 million in new capital and received an infusion of $32 million by the Treasury Department through its Small Business Lending Fund, it will continue to maintain strong capital ratios.
First PacTrust said it is paying shareholders of Beach Business Bank a 53 percent premium over the closing price of the stock on Aug. 30. The deal allows shareholders to receive stock and cash, or cash plus stock warrants.
— Mike Allen