First PacTrust Bancorp has inked a deal to acquire The Private Bank of California in Los Angeles in a $50 million deal.
The buy is expected to boost First PacTrust’s assets by $637 million to a total of $2.2 billion.
David Misch, chief executive of Private Bank, will serve as chief risk officer following the close of the transaction, which is scheduled for the second quarter of next year.
Steven Sugarman—a First PacTrust director for the past two years—joins the bank holding company’s Chief Executive Greg Mitchell as co-chief executive. Sugarman will focus on nondepository operations, while Mitchell oversees banking operations and continues as chief executive of subsidiary PacTrust Bank.
The deal for Private Bank follows two other recent First PacTrust acquisitions.
It completed a $15.5 million buy of Cerritos-based Gateway Business Bank last week. Mission Hills Mortgage Bankers—a Gateway division with 22 loan production offices in California, Arizona, Oregon and Washington—now is a mortgage-lending arm of PacTrust Bank.
Last month First PacTrust completed the $39 million acquisition of Manhattan Beach-based Beach Business Bank, which will be combined with Private Bank and operate under the latter bank’s name.
The two previous acquisitions pushed PacTrust past a handful of local banks with assets of about $1 billion each to become the second-largest bank in Orange County.
First PacTrust’s latest deal brings it closer to No. 1 Opus Bank, which has about $2.47 billion in assets.
Newcomers
PacTrust and Opus are relatively new to OC. First PacTrust arrived from Chula Vista in March, and Opus moved its headquarters from Redondo Beach late last year.
Both have been busy since arriving here, acquiring smaller financial institutions in OC and elsewhere to gain market share. Opus’ recent buys included Everett, Wash.-based Cascade Financial Corp. and RMG Capital Corp. in Fullerton, as well as 10 banking offices in Southern California from Los Angeles-based PacWest Bancorp.
First PacTrust has formed an advisory board in connection with the Private Bank deal. Richard Pachulski, founder and board member of The Private Bank, will serve as chairman.
Separately, First PacTrust appointed as general counsel John Grosvenor, who previously represented the bank while a partner in the Costa Mesa office of L.A.-based Manatt, Phelps & Phillips LLP.
