First PacTrust Bancorp to Acquire Beach Business Bank for $37.4M

First PacTrust Bancorp FPTB and Manhattan Beach, California-based Beach Business Bank BBBC today jointly announced that they have entered into a definitive agreement pursuant to which Beach Business Bank will merge into a wholly owned subsidiary of First PacTrust. The transaction is initially valued at approximately $37.4 million, or $9.07 per diluted share, to Beach Business Bank shareholders, representing a 53 percent premium relative to its most recent closing stock price. The First PacTrust and Beach Business Bank boards of directors have unanimously approved the transaction, which is expected to close in the first quarter of 2012. “The acquisition of Beach Business Bank represents a significant milestone in our stated strategy of becoming Southern California's bank of choice for growing families, small- to mid-sized businesses and high net worth individuals in the communities we serve,” said Greg Mitchell, president and CEO of First PacTrust Bancorp. “We are bringing together two highly complementary organizations that will enable First PacTrust to broaden its Southern California footprint into new attractive markets such as Manhattan Beach, Long Beach, Costa Mesa and Torrance. Beach Business Bank enjoys an outstanding reputation in the markets it serves and its management team has long-term expertise in commercial and industrial (C&I) and SBA lending. With its emphasis on offering superior customer service to its business banking clients, Beach Business Bank provides an excellent foundation for expanding First PacTrust's presence in the commercial banking market.”