In Brief: Greater Bay in $28M Deal for Pacific Rim

Greater Bay Bancorp, Palo Alto, Calif., announced plans to acquire San Francisco's Pacific Rim Bancorp. for an estimated $27.8 million of stock.

Greater Bay has agreed to pay 545,000 shares to Pacific Rim chairman Leo K.W. Lum. Pacific Rim is the parent company of Golden Gate Bank. Upon completion of the deal-expected around early July-Mr. Lum is expected to join Greater Bay's board of directors and assume 12% ownership of the $1.2 billion-asset company.

"The business combination allows Greater Bay Bancorp to strategically position itself in San Francisco, a key financial center for California and the United States," said David L. Kalkbrenner, president and chief executive officer at Greater Bay.

Greater Bay is a three-bank holding company formed in 1996 with the merger of Palo Alto's Mid-Peninsula Bank and Cupertino (Calif.) National Bank. In December, the company boosted its presence in Silicon Valley by acquiring Peninsula Bank of Commerce in Millbrae.

Like Mid-Peninsula, Cupertino National, and Peninsula, Golden Gate Bank will operate as a wholly owned subsidiary of Greater Bay with its own name and staff. The 22-year-old bank has $93 million of assets.