First PacTrust Bancorp Announces the Acquisition of Gateway Bancorp

First PacTrust Bancorp FPTB announced today that it has entered into a definitive agreement to purchase all of the issued and outstanding shares of Gateway Bancorp, the privately held holding company for Gateway Business Bank, Cerritos, California. As part of the transaction, First PacTrust will acquire Mission Hills Mortgage Bankers, which was founded in 1969 and is an operating division of Gateway Business Bank. Under the terms of the agreement, shareholders of Gateway Bancorp will receive an aggregate consideration of up to $17 million in cash (subject to certain holdback provisions) upon completion of the transaction. At closing, the combined company is expected to have total assets exceeding $1 billion and will operate through 14 bank branch locations throughout Southern California (including Los Angeles, Orange, Riverside and San Diego Counties) and 22 loan production offices through Mission Hills in California, Arizona and Oregon. The transaction has been approved by Gateway's shareholders, and the completion of the transaction is subject to regulatory approvals and other customary closing conditions. Assuming satisfaction of these conditions, the acquisition is currently expected to close late in the second half of 2011.