Banc of California has reached an agreement to acquire the California branch network of Popular Community Bank, as part of its growth strategy and strengthen its presence in Los Angeles and Orange County markets.
With the materialisation of the proposed transaction, Banc of California will acquire 20 retail branches, $1.1bn in deposits, $1.1bn in performing loans, over 60,000 account holders and certain other assets, real estate and liabilities of Popular.
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Under the terms of the agreement, Banc of California will reimburse nearly $5.4m in lieu of assuming the deposits and buying the loans.
The takeover will expand Banc of California’s branch network to include Popular Community Bank’s branches in Downtown Los Angeles, Whittier, Hacienda Heights, La Mirada, Commerce, Rowland Heights, Paramount, Wilmington, Montebello, Downey, and Santa Fe Springs, all located in Los Angeles County.
Banc of California will also foray into the Orange County communities of La Habra, Brea, Fullerton, Anaheim, Placentia, and Garden Grove.
Banc of California president and CEO Steven Sugarman said that the bank is pleased to expand its footprint throughout Los Angeles and Orange County, and to strengthen its capabilities to serve California’s fast-growing Latino community.
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By GlobalData"Latinos, who represent approximately 37% of the deposits acquired, are the most rapidly growing segment of new small business owners and entrepreneurs in California and are central to our mission of building California’s Bank," Sugarman added.
Post closure of transaction, Banc of California expects to have in excess of $5bn in total assets with over 100 locations and 38 branches.
After receiving regulatory approvals as well as satisfying other customary conditions, the transaction is expected to conclude during the fourth quarter of 2014.
