Placer Sierra Bancshares of Sacramento is buying First Financial Bancorp, the parent of the $324 million-asset Bank of Lodi, for $50 million in cash.
The $1.4 billion-asset Placer said Wednesday that the deal would extend its reach into the San Joaquin Valley. First Financial is in some of the state's fastest-growing counties, where homes are more affordable than in the coastal cities, Placer said.
The deal is expected to close this year. Bank of Lodi would become a division of Placer Sierra Bank but would retain its name. For 2005 the purchase is expected to add 30 cents a share to earnings and increase Placer's return on equity to over 13%, from 9.43% on March 31.
Placer would have about $1.8 billion of assets after the purchase and would be the largest community banking company headquartered in central California.
