Pacific Mercantile Bancorp is merging with Santa Ana-based Banc of California in an all-stock transaction valued at $235 million, or $9.77 per share, according to the companies.
When clear of regulatory approvals, the newly combined bank would have assets of around $9.5 billion.
Costa Mesa-based Pacific Mercantile Bancorp, a commercial bank with seven offices across Southern California, had $1.6 billion in total assets, $1.2 billion in gross loans and $1.4 billion in total deposits as of Dec. 31. The bank also had $229.7 million in Paycheck Protection loans outstanding at Dec. 31.
Under terms of the agreement, which has been approved by the boards of both banks, holders of Pacific Mercantile common stock would receive 0.5 shares of Banc of California common stock for each share of Pacific Mercantile common stock they own.
Existing Banc of California stockholders would own roughly 81% of the outstanding shares of the combined company and Pacific Mercantile shareholders are expected to own approximately 19%.
Banc of California has some $7.9 billion in assets and 36 offices including 29 full-service branches across Southern California
The merger is expected to close in the third quarter of 2021, subject to closing conditions.
