Pacific Commerce Bancorp in Los Angeles has agreed to buy ProAmérica Bank in Los Angeles.
The $350 million-asset Pacific Commerce said in a press release Thursday that it will pay $10.50 a share in cash and stock for the $211 million-asset ProAmerica. Based on ProAmerica's shares outstanding, the deal could be valued at about $29.1 million. The acquisition, which is expected to close in the second quarter, values ProAmerica at 119% of its tangible book value.
"This transaction represents the culmination of a partnership that we have been developing for a number of years," Tom Iino, Pacific Commerce's chairman, said in the release. "We believe the combination of our two banks … will enable us to better serve each of our core constituencies and the community at large."
"This partnership brings value to the shareholders of both banks and demonstrates continued commitment to the Latino marketplace," Maria Salinas, ProAmerica's chairman, said. "The combined organization will have significantly higher lending limits, more product offerings and a branch network that will stretch all the way to the Mexican border."
Pacific Commerce said it expects the deal to be immediately accretive to its 2016 earnings.
Pacific Commerce was advised by FIG Partners and Stuart & Moore. ProAmerica was advised by Keefe, Bruyette & Woods and Manatt, Phelps & Phillips.