First Choice Bancorp of Cerritos, the holding company for First Choice Bank, will acquire the parent company of Pacific Commerce Bank for roughly $110.4 million in stock, the companies announced Feb. 26.
The Los Angeles-area banks each have branches in San Diego.
Under the agreement, shareholders of the downtown Los Angeles-based Pacific Commerce Bancorp will receive a fixed ratio of shares of First Choice common stock, based on a 30-trading day average price of $24.83.
First Choice shareholders will own 63.5 percent of the combined company; Pacific Commerce stockholders are expected to own 36.5 percent. The deal was valued at $110.4 million, or $11.54 per PCBC common share.
The merger, pending regulatory approval, will boost First Choice assets to $1.5 billion, officials said.
First Choice Bancorp, founded in 2005, is the holding company for First Choice Bank, a community-based bank with a branch in Carlsbad, in addition to Cerritos, Alhambra, Rowland Heights and Anaheim. First Choice Bank has assets of $913 million as of October 2017.
Pacific Commerce Bancorp, founded in 2002, has six branches in Los Angeles and San Diego counties, including in Carmel Valley and Chula Vista. Pacific Commerce Bank has assets of $527 million as of October 2017.
Together, First Choice and Pacific Commerce have $1.5 billion in assets, putting it in the top 20 of the region’s largest financial institutions.
Reporter Sarah de Crescenzo contributed to this report.