PMBC - Banc of California acquires Pacific Mercantile Bancorp for $235M

Banc of California (BANC) and Pacific Mercantile Bancorp (PMBC) have entered into a definitive agreement and plan of merger under which Pacific Mercantile will merge into Banc of California in an all-stock transaction valued at ~$235M, or $9.77/share.Holders of Pacific Mercantile common stock will receive 0.5 shares of Banc of California common stock for each share of Pacific Mercantile common stock.The transaction increases Banc of California’s total assets to ~$9.5B on a pro forma basis as of December 31, 2020. Existing Banc of California stockholders to own ~81% of the outstanding shares of the combined company.Banc of California expects the transaction to be 12.9% accretive to EPS in 2022 with a 2.3 year earnback period to tangible book value per share based on a conservative and achievable cost savings estimate of ~35%.Transaction is expected to close in 3Q21.Shares BANC -0.20% after-hours.Shares PMBC +22.8% after-hours.

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Banc of California acquires Pacific Mercantile Bancorp for $235M