HomeStreet in Seattle has agreed to buy Orange County Business Bank in Irvine, Calif.
The $4.8 billion-asset HomeStreet said in a press release Monday that it will pay $49.8 million in stock, or $11.70 a share, and $5.5 million in cash for the $200 million-asset Orange County Business Bank. The number of shares could be adjusted based on the performance of HomeStreet's stock during a 10-day period before the deal's closing.
The deal is expected to close in the fourth quarter or early in the first quarter.
Commerce Street Investment Management in Dallas earlier this year pressured Orange County Business Bank to sell itself, while accusing the bank of misleading investors in its fourth-quarter 2014 earnings release.
Orange County Business Bank has one branch in Irvine. HomeStreet has 13 branches in California, including an office in Orange County.
MJ Capital Partners and Davis Wright Tremaine advised HomeStreet. Sandler O'Neill and King, Holmes, Paterno & Soriano advised Orange County Business Bank.