Banc of California, Inc., the holding company of Banc of California, N.A., announced the completion of its acquisition of Pacific Mercantile Bancorp. Following the acquisition, Banc of California will have over $9 billion in total assets.
Jared Wolff, President and CEO of Banc of California, said, “The Pacific Mercantile acquisition significantly enhances the growth of our business banking franchise in Southern California with the addition of approximately $980 million in gross loans, $1.3 billion in total deposits and $1.5 billion in total assets as of Sept. 30, 2021. Moreover, we are excited to welcome Pacific Mercantile’s clients and team of highly experienced bankers into our Banc of California family.”
Wolff added, “We are very proud of the commitment and hard work of the team members of Banc of California and Pacific Mercantile who have already made significant progress in planning and integrating the two organizations and will complete the Pacific Mercantile system conversion this quarter. We expect the smooth transition of Pacific Mercantile clients to our platform and integration of our teams will enable us to deliver quickly on the compelling economic benefits of the transaction and enhance the value of our franchise.”
Under the terms of the Agreement and Plan of Merger, each Pacific Mercantile common share, other than excluded shares, was converted into the right to receive 0.50 of a share of Company common stock. The Company is issuing an aggregate of approximately 11.9 million shares of Company common stock and paying approximately $3.2 million in cash to equity award holders. The value of the total deal consideration is approximately $226 million.
In connection with the completion of the merger, two Pacific Mercantile directors, Denis P. Kalscheur and Shannon F. Eusey, have joined the Board of Directors of the Company and the Bank (the Board). In addition, the company announced the appointment of Vania Schlogel to the Board. Kalscheur was most recently the Chairman of the Board of Pacific Mercantile, Eusey is the co-founder, Chief Executive Officer and President of Beacon Pointe Advisors, and Schlogel is the founder and Managing Partner of Atwater Capital. Barbara Fallon-Walsh, a well-respected and valued Board member, retired from both boards effective at the closing of the merger.
“We are sad to see Fallon retire and would like to thank her for her many contributions and service to the Board,” said Board Chair Bob Sznewajs. “Her leadership and guidance were instrumental in guiding the Company through its transformation.”