Orange County Business Journal

PacTrust Acquisition Gets Fed OK

Jane Yu Friday, August 3, 2012

Irvine-based First PacTrust Bancorp Inc. is one step closer to completing its $15.5 million acquisition of Cerritos-based Gateway Bancorp, a deal inked last June.

First PacTrust today announced it has received the Federal Reserve Bank’s approval of the acquisition, which it expects to close on August 17.

First PacTrust now expects potential purchase gain to total at least $5 million, up from an earlier forecast of $3 million. The increase in guidance was based on Gateway’s profitability during the first half of the year, which included $1.4 million in net income in the second quarter.

“With Gateway and our recently completed acquisition of Beach Business Bank, we will now have 41 bank locations, including the soon-to-open Newport Beach branch,” Chief Executive Gregory Mitchell said.

Gateway branches in Laguna Hills and Lakewood are expected to be renamed to PacTrust Bank on August 20.

The acquisition also will bring Mission Hills Mortgage Bankers—a division of Gateway’s subsidiary, Gateway Business Bank—under the First PacTrust fold.

That includes 22 loan production offices throughout California, Arizona, Oregon and Washington. The lending arm has originated $490 million in single-family residential mortgages during the first half of this year.

First PacTrust completed its $39 million acquisition of Manhattan Beach-based Beach Business Bank last month.