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Jared Wolff

Jared Wolff

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.”

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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.