BayCom, the holding company for United Business Bank, has signed an agreement to acquire Pacific Enterprise Bancorp (PEB) in an all-stock transaction worth $53.1m.
Under the agreement, PEB will be merged with and into BayCom and its subsidiary Pacific Enterprise Bank will be merged with and into United Business Bank.
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Pacific Enterprise Bank caters to small and middle-market businesses and individuals.
As of 30 June 2021, PEB had approximately $646.9m in assets, $568.7m in loans, $424.1m in deposits and $61m in shareholder’s equity.
Upon the deal completion, the combined entity will have approximately $2.9bn in assets, $2.1bn in loans and $2.4bn in deposits.
BayCom president and CEO George Guarini said: “The transaction will expand both our presence in Southern California and the breadth of our resources in the area of SBA and other government guaranteed lending products.
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By GlobalData“We look forward to the prospect of establishing new relationships, enhancing our position in the market and building on an already strong foundation.”
PEB president and CEO Brian Halle said: “We are excited about the merger and believe the combined company will be able to better service both new and existing clients. We are blessed with a solid, experienced employee base that have expertise in low risk, high margin loan programs. Couple that with a much lower, diversified cost of funds and we are optimistic that the combined company’s profitability will improve.”
The boards of directors of BayCom and PEB have approved the merger agreement, which is expected to close in the first quarter of 2022.
