Rancho Santa Fe (Calif.) National Bank said it plans to buy First Community Bank of the Desert of Yucca Valley, Calif., for about $19 million, which would create a $325 million-asset holding company in Southern California.
Rancho Santa Fe said it would exchange 0.3 share of its stock for each share of First Community. The deal, announced Monday, is valued at $19.4 million, or $4.05 a share. The price is 2.4 times First Community's book value and 15.84 times its trailing earnings.
The planned holding company -- First Community Bancorp -- would operate 10 branches in northern San Diego County and the desert communities in Coachella Valley. Each bank would retain its name.
The deal is expected to close early next year when Rancho Santa Fe president James A. Boyce would become president and chief executive officer of the holding company.
-- Matt Andrejczak