First Pactrust Bancorp, Inc. (FPTB, FPBT, BANC), the holding company for PacTrust Bank and Beach Business Bank, and The Private Bank of California (PBCA) jointly announced that they have entered into a definitive agreement pursuant to which The Private Bank of California will merge into Beach Business Bank, a wholly owned subsidiary of First PacTrust. After closing of the deal, Beach Business Bank will be renamed "The Private Bank of California."
The transaction is initially valued at around $50 million, or approximately $13 per share. This represents a twenty-seven 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, 2.08 million shares of First PacTrust common stock having a value of approximately $25 million.
The boards of directors of First PacTrust, Beach Business Bank and The Private Bank of California have each unanimously approved the transaction, which is expected to close during the second quarter of 2013.
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