Midland Financial, the parent of MidFirst Bank, has agreed to acquire 1st Century Bancshares, the parent of 1st Century Bank, National Association, in a cash deal worth about $116m.
As of 31 December 2015, 1st Century Bancshares managed assets of $732m, net loans of $589m and deposits of $598m. Its subsidiary 1st Century Bank operates from three locations in Los Angeles, California.
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Under the terms of the deal, stockholders of 1st Century Bancshares will secure cash of $11.22 per share.
1st Century Bank will be merged into MidFirst Bank post completion of the deal and will continue to operate under the 1st Century brand as a division of MidFirst Bank.
The transaction has already received the go-ahead from the boards of directors of the two banks and holding companies. It is expected to close in the second half of 2016, subject to stockholder and regulatory approvals.
MidFirst Bank chairman Jeff Records said: "1st Century is a well-designed, customer focused community bank that has shown remarkable growth and customer loyalty over its decade long expansion. Like 1st Century, MidFirst prides itself on its strong commitment to the community and dedication to an unparalleled customer experience.
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By GlobalData"The exceptional management team at 1st Century gives us great confidence for its continued growth in the robust Los Angeles marketplace."
