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Banc of California to Buy Pacific Mercantile

Santa Ana’s Banc of California Inc. (NYSE: BANC), the second largest bank headquartered in Orange County, said it will buy Costa Mesa-based Pacific Mercantile Bancorp (Nasdaq: PMBC) in an all-stock transaction valued at $235 million.

After the $9.77 per share offer was announced, Pacific Mercantile shares jumped 24% in after hours trading to $10 each. Before the announcement, they traded at $8.06 and a $192 million market cap. Last March, the shares fell as low as $2.95.

“Pacific Mercantile is a strong strategic fit,” Banc of California Chief Executive Jared Wolff said in a statement. “Its size, business focus, and deposit profile perfectly align with our existing operations, and will accelerate our growth and operating scale in key markets.”

Banc of California shares were unchanged after the announcement. Existing Banc of California stockholders will own approximately 81% of the outstanding shares of the combined company and Pacific Mercantile shareholders are expected to own approximately 19%. The transaction is expected to close in the third quarter.

For more information, read the Business Journal’s print edition on March 29.  

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.
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