Irvine-based First Foundation Inc. (Nasdaq: FFWM) will buy PBB Bancorp (OTC, PBCA) for $106 million in stock.

The deal gets First Foundation access to wealthy L.A. neighborhoods and will add $587 million in assets. The two companies had a combined $4.7 billion in total assets as of Sept. 30.

Los Angeles-based PBB Bancorp is the parent company of Premier Business Bank and its community bank divisions, Premier Bank of Palos Verdes and First Mountain Bank. It also runs an SBA loan center in Torrance.

PBB Bancorp shareholders get 1.05 shares of First Foundation common stock for each share of PBB Bancorp. The deal is based on a closing price for First Foundation’s common stock of $19.04 as of Dec. 18; the value per share for a PBB Bancorp shareholder is $19.99.

First Foundation shares declined 2% in recent trading to $18.66 and a $703 million market cap. PBB shares jumped 51% to $18.98 and a $64 million market cap.

The transaction has been unanimously approved by each company’s board of directors and is expected to close in the second quarter of 2018, subject to customary closing conditions. The deal is expected to be immediately accretive to First Foundation’s earnings, excluding $5.1 million in one-time expenses.

First Foundation was advised by Sandler O'Neill + Partners, L.P., and Sheppard, Mullin, Richter & Hampton LLP served as legal counsel. PBB Bancorp was advised by and received a fairness opinion from MJC Partners LLC, and King, Holmes, Paterno & Soriano LLP served as legal counsel.