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Pacific squares up for Plaza
Posted on Wednesday, 09 August 2017 14:10
Pacific Premier Bancorp is bolstering its position as a leading commercial bank in southern California with total assets of USD 7.70 billion through the all-stock acquisition of Plaza Bancorp for USD 226.30 million.
The offer equates to USD 7.29 per share, or a multiple of 15.7 times price to earnings per share in the second quarter of 2017 and 187.1 per cent price to tangible book value.
Plaza owns Plaza Bank, an Irvine-headquartered community bank with about USD 1.27 billion in assets and seven regional offices comprising four in Los Angeles county, one in Orange county, one in San Diego and one in Las Vegas.
The holding company offers commercial, real estate, construction and small business loans, among other things, and had gross deposits of USD 1.10 billion and loans of USD 1.10 billion as of 30th June 2017.
Not only does the acquisition provide Pacific a foothold in Los Angeles county with USD 353.00 million of deposits, but it also creates a combined entity which would become the fifth largest bank headquartered in southern California by assets.
The enlarged lender would have a branch footprint spanning the state’s central coast to San Diego, a tangible common equity ratio of 9.0 per cent, on a pro forma basis as of 30th June 2017.
It should have a leverage ratio of 9.7 per cent, common equity Tier-1 of 10.4 per cent, Tier-1 of 10.7 per cent and risk-based capital ratio of 12.4 per cent.
Carpenter Fund Manager currently owns 86.0 per cent of Plaza and will own at least 9.9 per cent and have a seat on the board of the combined company.
Pacific’s total assets have increased by a compound annual growth rate of 46.0 per cent since 2011 on the back eight acquisitions over this timeframe, including completing the purchase of Heritage Oaks earlier this year.
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