Midland Financial in Oklahoma City has agreed to buy 1st Century Bancshares in Los Angeles.
Midland, the parent of the $11.6 billion-asset MidFirst Bank, said in a press release Thursday that it will pay $11.22 a share for the $732 million-asset 1st Century. Based on 1st Century’s shares outstanding on Dec. 31, the purchase price would be about $116 million. The deal is expected to close in the second half of this year.
A large 1st Century investor, Maltese Capital Management in New York, said in October that it was “concerned” that the company planned to raise $30 million. Maltese Capital owned about 1 million shares of 1st Century on Dec. 31.
Midland said it plans to operate 1st Century under the 1st Century Bank name after the deal closes. Alan Rothenberg, 1st Century’s chairman, and Jason DiNapoli, the company’s chief executive, will be retained by Midland.
Midland has 84 branches in Oklahoma, Arizona and Colorado. The 1st Century deal, Midland’s first since 2009, will allow that company to enter California.
Macquarie Capital and Covington & Burling advised Midland. Sandler O'Neill; Sullivan & Cromwell; and Richards, Layton & Finger advised 1st Century.