California Bank Finalizes Business Merger Of Two Subsidiaries
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Monday, October 21, 2013.
Many times it makes business sense for one company to have multiple subsidiary companies. However, there are other times when it would be more efficient to merge together separate subsidiaries. This is what Banc of California Inc. has decided to do in a recent business merger of its two subsidiary banks, Pacific Trust Bank and Private Bank of California.
The two subsidiaries are now being merged together to create one single bank named Banc of California. In July, the company, which had previously been known as First PacTrust Bancorp Inc., acquired the Private Bank of California. This resulted in a significant expansion with 22 more branch locations and an additional 23 offices dedicated to loan production.
The total number of assets of the newly merged company will be approximately $2.2 billion. The merger also significantly expanded the bank's geographical reach across various states. This will help with maintaining the financial strength of the banking firm. Bank executives are hoping that their new name and branding will help position the company to serve successful California entrepreneurs, business owners and executives.
In order for this California business merger to be completed successfully, the proper legal procedures to form the new entity must be followed. Failure to do so could result in future legal complications which could end up being costly. Therefore, knowledge of correct procedure and legal documents to be filed to appropriate regulating agencies is critical when creating a new business entity through a merger. It is also important to properly form new legal contracts specifying how the new company will be managed.
Source: Los Angeles Business Journal, Banc of California Completes Merger, Deborah Crowe, Oct. 15, 2013