California Bank of Commerce (OTCQX:CABC) today announced that on December 31, 2015, it completed its previously announced acquisition of Pan Pacific Bank (OTCPINK:PPFC). The acquisition, which was first announced on September 18, 2015, was concluded following receipt of approval for the transaction from the shareholders of California Bank of Commerce and Pan Pacific Bank, and all required regulatory approvals. The combined bank has over $650 million in assets with offices in San Jose, Fremont, Oakland, and Lafayette, California.
“The new locations will complement California Bank of Commerce’s already growing commercial banking presence in the South Bay, accelerating our stated expansion strategy,” said Stephen A. Cortese, Chairman of the Board of California Bank of Commerce. Wayne Doiguchi, previously Chairman and CEO of Pan Pacific Bank, will join the board of California Bank of Commerce. “Wayne brings a wealth of banking experience to our Board and South Bay relationships to our Bank. He is a terrific addition to our team,” said Cortese.
California Bank of Commerce currently has a commercial banking team and an Asset Based Lending team in San Jose. The bank’s commercial team will combine with the Pan Pacific office on Park Avenue in San Jose. “We are excited to continue our South Bay expansion with the addition of Pan Pacific’s locations, clients, and business bankers. We are confident the combined Bank will spur further growth for the Bank in the South Bay,” said Terry A. Peterson, President and CEO of California Bank of Commerce.
The merger had an aggregate deal value of approximately $24.8 million. California Bank of Commerce is issuing approximately 1,133,609 shares and $8,088,383 in cash to Pan Pacific Bank shareholders to complete the transaction.
Hovde Group acted as financial advisor to California Bank of Commerce and delivered a fairness opinion to its Board of Directors. Ernie Panasci and Ryan Behrman with Stinson Leonard Street LLP served as legal counsel for California Bank of Commerce. Keefe, Bruyette & Woods, Inc. acted as financial advisor to Pan Pacific Bank and delivered a fairness opinion to its Board of Directors. Manatt Phelps & Phillips LLP served as legal counsel for Pan Pacific Bank.