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FirstPacTrust wins regulatory nod for Gateway deal.

MANews-(C)2009-2012

3 August 2012 - FirstPacTrust Bancorp (NASDAQ:FPTB) said its planned USD15.5m (EUR12.7m) takeover of local Gateway Bancorp, the holding company of Gateway Business Bank, had received the necessary regulatory clearance.

In a statement, the buyer said the deal had been approved by the Federal Reserve Bank. The transaction, which is seen to close on 17 August or around that date, has already been backed by the Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency.

The purchase price is equal to 60% of Gateway's tangible common equity as of end-June 2012. The buyer, the parent of PacTrust Bank and Beach Business Bank, has improved its guidance for the anticipated bargain purchase gain to a minimum USD5m from USD3m earlier in view of Gateway's profitable operations in the January-June period. The gain will be reflected in FirstPacTrust's earnings for the third quarter of the year.

Under the terms of the deal, PacTrust Bank will add Mission Hills Mortgage Bankers, a division of Gateway Business Bank, to its business. Mission Hills Mortgage Bankers, which originated USD490m in single family residential mortgages last year, runs a network of 22 loan production offices in California, Arizona, Oregon and Washington.

In addition, First PacTrust has decided to consolidate Gateway Business Bank into PacTrust Bank. The acquisition of Gateway will add to its recent takeover of Beach Business Bank, bringing the number of its bank locations to 41.

First PacTrust was advised by Wachtell, Lipton, Rosen & Katz and DA Davidson & Co on the deal.Country: USASector: Banking/Financial ServicesTarget: Gateway BancorpBuyer: FirstPacTrust Bancorp Deal size in USD: 15.5mType: Corporate acquisitionStatus: AgreedBuyer advisor: Wachtell, Lipton, Rosen & Katz, DA Davidson & Co Comment: Federal Reserve Bank approves deal

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Publication:M & A Navigator
Date:Aug 3, 2012
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