Pacific Continental (PCBK) in Eugene, Ore., has agreed to buy Century Bank for $13.4 million in cash.
The $1.3 billion-asset Pacific has been on the lookout for acquisitions that "make sense strategically, financially and culturally," Hal Brown, the company's chief executive, said in a press release. KBW's Keefe, Bruyette & Woods added Pacific to a list of potential buyers earlier this year.
Pacific's last acquisition took place about seven years ago when it bought Northwest Business Bank in Seattle.
The $85.8 million-asset Century has one branch in Eugene, where it is based. Pacific Continental has 14 branches in Oregon and Washington. Century also has $72 million in loans, essentially no securities and $69 million of deposits, Tim O'Brien, an analyst at Sandler O'Neill & Partners, wrote in a note to clients Wednesday.
The deal would total about $13.13 a share of Century Bank and would represent roughly 109% of Century's tangible book value. Pacific expects the deal, which should close in the first quarter, to immediately add to its earnings per share.
Pacific was advised by D.A. Davidson as financial advisor and Pillsbury Winthrop Shaw Pittman as legal counsel. Century was advised by McAdams Wright Ragen as financial advisor and Lane Powell as legal counsel.
Last week, Pacific reported that its third-quarter earnings rose nearly 33% from a year earlier, to $3.4 million. The company did not record a loan-loss provision, compared with a $1.8 million provision a year earlier. Gross loans rose 1% from a year earlier, to $837 million, while the net interest margin compressed by 40 basis points, to 4.16%.