First Foundation Bank in Irvine, Calif., has agreed to buy Pacific Rim Bank in Honolulu.
The $1.3 billion-asset First Foundation will pay roughly $12 million in stock, or $7.18 a share, for the $121 million-asset Pacific Rim Bank. The transaction is expected to close by mid-2015.
"This strategic partnership provides First Foundation with an excellent opportunity to build on our existing client base in Hawaii," Scott Kavanaugh, First Foundation's chairman and chief executive, said in a press release Tuesday. "We are thrilled at the opportunity to now have a local presence in Honolulu. Hawaii has been an important region for us and we are committed to serving the unique financial needs of its thriving business community as well as expanding programs available to local nonprofits."
The deal is noteworthy because mainland banks rarely make bold steps in Hawaii. Still, a number of the state's banks have been making preparations for such incursions.
First Foundation was advised by Stradling Yocca Carlson & Rauthl. Pacific Rim Bank was advised by Sandler O'Neill and Manatt, Phelps & Phillips.