Add Coast Bancorp to Greater Bay Bancorp's fast-growing roster of Northern California community banks.
Palo Alto, Calif.-based Greater Bay announced a deal late Tuesday to buy $350 million-asset Coast Bancorp of Santa Cruz for $125 million of stock. The pooling-of-interests deal is the fourth - and most expensive - announced by $2.6 billion-asset Greater Bay this year and continues its aggressive push to expand before regulators close the window on pooling acquisitions. Under terms of the deal, Greater Bay would pay 4.1 times Coast's book value and 19.4 times its forward earnings. On average, Greater Bay has been paying sellers roughly 3.35 times their book value.