Irvine, CA-based First PacTrust Bancorp, the holding company for Pacific Trust Bank and Beach Business Bank, is to acquire Century City's The Private Bank of California in a deal whereby the latter firm will merge into Beach Business. The combined unit will ultimately be renamed The Private Bank of California.

According to a statement, the boards of directors of all companies involved have approved the transaction, which is valued at $50 million and expected to close during the second quarter of 2013.

As well as its headquarters in Century City, The Private Bank of California also has branches in Hollywood and Irvine, with some $650 million in assets. 

Greg Mitchell, First PacTrust chief executive, said the deal will enable the firm to expand its Southern California footprint in “attractive markets” such as Los Angeles, Hollywood, Century City and Irvine. After the deal closes, the Nasdaq-listed firm expects to have some $2.2 billion in total assets, with 22 branches in Los Angeles, Orange, San Diego and Riverside counties, as well as 23 loan production offices in California, Arizona, Oregon and Washington. 

As part of the deal, shareholders of The Private Bank of California will receive, in aggregate, 2,083,333 shares of First PacTrust common stock, valued at about $25 million (equivalent to $12.00 per share).

Once the transaction has closed, First PacTrust expects its Tier 1 Capital Ratio to exceed 13 per cent on a fully-consolidated, pro forma basis.

As part of the transaction, Richard Pachulski, David Misch, Richard Smith, and Nick Zappia will continue working with First PacTrust after the deal has been sealed. Pachulski will serve as chairman of First PacTrust’s newly-formed advisory board.

Related appointments

Steven Sugarman, director, has been named co-CEO of First PacTrust. Sugarman has served on the board of directors since November 2010, including as chairman of the strategic planning committee. Greg Mitchell will continue to serve with Sugarman as co-CEO of First PacTrust’s banking operations, and will also remain CEO and president of PacTrust Bank.

Meanwhile, John Grosvenor has been named First PacTrust’s general counsel, while Jeff Seabold, director, has been added the board of directors of PacTrust Bank. Seabold has served on the board at First PacTrust since February 2011 and previously served as a director of PacTrust Bank.

The transaction remains subject to customary closing conditions, including the receipt of all required regulatory approvals and approval by the shareholders of The Private Bank of California.