RBB Bancorp has concluded the acquisition of Chicago-based Pacific Global Bank in a cash deal valued at nearly $32.9m or $69.49 per share.
Pacific Global Bank offers consumer and business banking and loan products and services to the Chinese-American communities in Chicago.
It has three branches located in the neighborhoods of Chinatown and Bridgeport.
PGB owns two of its three branches with an estimated fair market value of approximately $2m in excess of book value.
RBB expects the transaction to be accretive to earnings per share in 2020 in the high single digit range.
Following the completion of the deal, Pacific Global Bank has been merged into Royal Business Bank (RBB), bringing its total assets to over $3bn.
RBB board CEO and chairman Alan Thian said: “We are very pleased to welcome PGB’s customers and employees to RBB Bancorp. We plan to operate our Chicago branches as Pacific Global Bank, A Division of Royal Business Bank, until the system conversion near the end of March at which time we will operate the branches as Royal Business Bank.
“Following the system conversion in March, we plan to supplement the lending product offering by PGB with our mortgage, SBA 7A, small C&I and construction lending products. We believe this expanded suite of product offerings will provide a superior banking experience for our customers, as well as allowing us to win a greater share of their banking business.”
For the transaction, the Findley Group acted as financial advisor to RBB, while Loren P. Hansen served s RBB’s legal counsel.
On the other hand, Janney Montgomery Scott acted as financial advisor to PGB and Barack Ferrazzano Kirschbaum & Nagelberg is serving as PGB’s legal counsel.