Independence Bank in Newport Beach, Calif., has agreed to buy Premier Service Bank (PSBK) in Riverside.
The $312 million-asset Independence plans to pay $8.6 million in cash and stock for the $128 million-asset Premier, the companies announced Monday. The per-share price of $6.85 is a 52% premium to Premier's Monday closing price of $4.50 a share.
Premier has two branches, both in Riverside County, and Independence has four, all in Orange County. Following the merger, Kerry Pendergast, Premier's chief executive, and Ken Stream, Premier's chairman, would join Independence's board, and Pendergast would become a regional president.
"This merger gives us a meaningful presence in Riverside County and we look forward to continuing to provide Premier's customers, communities and stakeholders the type of full-service relationship banking experience they've come to expect," said Chuck Thomas, Independence's CEO, in the news release.
Following the merger, Independence expects to list its stock publicly on the over-the-counter market, it said.
Premier agreed in February 2012 to sell itself to First California Financial Group in Westlake Village for $2 million, but the companies canceled the merger in January due to delays in closing the deal. First California later sold itself to PacWest Bancorp (PACW) in Los Angeles.
Keefe, Bruyette & Woods advised Independence and Hovde Group advised Premier. The banks expect the merger to close in the first half of 2014, pending regulatory approvals.