First PacTrust Bancorp, Inc. (Nasdaq: BANC), the holding company for PacTrust Bank, announced today that the Federal Reserve Bank of San Francisco had approved its application to become a bank holding company and to acquire Beach Business Bank. First PacTrust expects to close the acquisition shortly following the expiration of the 15-day waiting period associated with the Federal Reserve’s approval order. As previously announced by Beach, Beach’s shareholders approved the acquisition on December 27, 2011.
The acquisition of Beach is expected to strengthen First PacTrust’s presence in the commercial banking market and expand its footprint in markets such as Manhattan Beach, Long Beach and Costa Mesa, California. First PacTrust expects to maintain strong capital ratios after the acquisition, and the transaction is expected to be accretive to First PacTrust’s earnings in the first year, excluding one-time merger costs, and accretive to tangible book value within one year of closing. Upon completion of the transaction, First PacTrust expects to maintain approximately $1.45 billion in total assets with 18 branches located throughout Los Angeles, Orange, San Diego and Riverside counties.
Greg Mitchell, First PacTrust’s President and Chief Executive Officer, commented, “Approval of our application to become a bank holding company and complete the acquisition of Beach Business Bank represents an important milestone in the evolution of First PacTrust Bancorp as we continue to build a premier banking enterprise in California. To our knowledge, with this approval First PacTrust will become the first savings-and-loan holding company since the passage of the Dodd-Frank legislation to successfully convert to a bank holding company. We are appreciative of the hard work performed by our staff, Board of Directors and regulators in getting us to this point. Most importantly, we are looking forward to welcoming Bob Franko and the team at Beach Business Bank into the First PacTrust family.”