Business Merger Between California Banks Obtains Final Approval
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Thursday, May 30, 2013.
There are some industries which are more heavily regulated by the government than others. The banking industry is one of these industries. There are certain actions which require banks to receive approval from federal regulators before being finalized. This is the case with a business merger between First California Financial Group and PacWest Bancorp.
Federal regulators have recently given their final approval for the merger of the two banks. First California Bank is a subsidiary of First California Financial Group. The merger is expected to close at the end of May. According to plans by the merging banks, by mid-June First California banks will be changed to PacWest branches.
First California Bank has $1.9 billion worth of assets and has fifteen branches located in California. PacWest has approximately $5.4 billion worth of assets and operates 66 branch locations statewide. The two banking firms have not announced any planned closures of branch locations that may result from the merger. PacWest shares experienced a drop on the NASDAQ. However it is unclear whether or not this was a result of the business merger.
The business merger is estimated at a total value of $231 million. This will make the newly publicly-held entity the eighth largest banking firm to be headquartered in the state of California. Due to the size of the merger, it is important that the company's business plan ensures compliance with applicable rules and regulations set forth by law. Ensuring compliance will help to avoid future legal problems and fines from government regulating agencies.
Source: San Fernando Valley Business Journal, "Bank Merger Gets Final Approval," Mark Madler, May 15, 2013