is planning to buy
Commercial Capital Bancorp
in a deal that values the California-based lender at $983 million.
Each Commercial Capital share will be acquired for $16 in cash. The deal was announced Sunday. Shares of Commercial Capital rose $1.55, or 11%, to $15.70, while Washington Mutual was down 39 cents, or 0.9%, at $44.62.
Washington Mutual said the acquisition of Commercial Capital enhances its commercial and retail banking business in California and further diversifies its asset generation and earnings. Washington Mutual expects the transaction to add 4 cents to its 2007 earnings per share.
The companies should close the transaction in the third quarter, provided Commercial Capital shareholders and regulators approve the plan.
Separately, Commercial Capital reported earnings of $13.8 million, or 24 cents a share, for the first quarter. The company earned $23.1 million and 40 cents a share in the year-ago period. Total assets were $5.7 billion at the end of March.