Pursuant to the agreement, both parties’ subsidiaries, namely First California Bank will also be merged into Pacific Western Bank.
The transaction, which has been approved by the directors of both firms, is expected to close late in the first quarter of 2013, pending approval from the regulatory and companies’ stockholders.
Following the completion of the transaction, two independent directors of First California will join PacWest’s board of directors.
As of 30 September 2012, on a pro forma consolidated basis, both firms would have had nearly $7.5bn in assets with 81 branches in California.
Keefe, Bruyette & Woods, served as financial advisor to First California and delivered a fairness opinion to the board of directors of the company, while Skadden, Arps, Slate, Meagher & Flom acted as legal counsel.
PacWest received financial advice from Castle Creek Financial, while Wachtell, Lipton, Rosen & Katz served as legal counsel to the company.
