First National Bank of Southern California announced Monday that it is acquiring First Mountain Bank in Big Bear Lake, Calif., in a deal that would roughly double its size.
First National, based in Riverside, said it would pay roughly $14.1 million in cash for First Mountain, creating a company with nearly $300 million of assets and 10 branches in San Diego, Riverside and San Bernardino counties. The purchase price is equal to $9 per share, but it could be lowered if First Mountain's shareholder equity falls below $12.175 million at the time the deal closes.
"When consummated, this union will be a key step in our strategy to augment our growth through organic and external means," First National Chairman Michael Persall said in a press release.
First National operates primarily in San Diego County and the deal would expand its presence in the eastern Los Angeles suburbs. First Mountain, which has assets of $137 million, has offices in Big Bear Lake, Running Springs and Lucerne Valley.
First Mountain's chief executive, Jack Briner, will become a director at First National and will continue to oversee operations in Big Bear Lake. Frist Mountain's chief credit officer and chief operating officer will assume similar roles in the combined bank.
The deal, which was approved unanimously by the boards of both banks, is expected to close in the third quarter.