CBB Bancorp buying Ohana Pacific Bank

Los Angeles-based CBB Bancorp Inc. is buying Honolulu-based Ohana Pacific Bank in a deal that expands CBB's footprint to Hawaii.

Ohana Pacific Bank shareholders will receive $10.25 in cash for each share and a nontransferable contingent value right entitling them to receive up to 75 cents in additional cash for each share based on the performance of an identified pool of Ohana Pacific Bank loans during the period from Sept. 30, 2020, through the date 12 months after the deal closes or, if earlier, June 30, 2022. The transaction would result in a total value to Ohana Pacific Bank shareholders of up to $24.8 million, including full payout on the contingent value right.

S&P Global Market Intelligence calculates the deal value to be 115.02% of common equity and tangible common equity and 19.87x earnings. The deal value is also 12.54% of assets and 14.22% of deposits, while the tangible book premium to core deposits ratio is 2.78%.

S&P Global Market Intelligence valuations for bank and thrift targets in the West region between Jan. 28, 2020, and Jan. 28, 2021, averaged 91.59% of book and 111.92% of tangible book and had a median of 16.56x last-12-months earnings, on a per-share basis.

The acquisition is expected to close in the second half of 2021.

Based on S&P Global Market Intelligence data, the acquisition will see CBB Bancorp enter Honolulu County, Hawaii, with two branches to be ranked ninth with a 0.44% share of approximately $41.04 billion in total market deposits.

Keefe Bruyette & Woods served as CBB's financial adviser, and Arnold & Porter Kaye Scholer LLP was legal counsel. The Findley Group was financial adviser and Gary Steven Findley and Associates was legal counsel to Ohana Pacific Bank.

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