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RBB Bancorp to acquire PGB Holdings in $33M all-cash deal

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RBB Bancorp to acquire PGB Holdings in $33M all-cash deal

Los Angeles-based RBB Bancorp agreed to acquire Chicago-based PGB Holdings Inc. and unit Pacific Global Bank in an all-cash deal valued at approximately $32.5 million.

RBB Bancorp expects the deal to be accretive to 2020 EPS in the high single-digit range based on its estimated cost savings of roughly 30% of PGB's noninterest expenses, with the savings phased in during 2020. The EPS estimate excludes potential revenue synergy assumptions.

The company also expects to incur tangible book value per share dilution of approximately 3.9% upon closing of the transaction, with a tangible book value dilution payback period of approximately 3.3 years.

The deal is expected to close in early first quarter of 2020.

S&P Global Market Intelligence calculates the deal is 169.5% of common equity and 169.5% of tangible common equity and 9.7x earnings, on an aggregate basis. The deal value is 14.55% of assets, 16.53% of deposits and the tangible book premium to core deposits ratio is 9.50%.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Sep. 6, 2018, and Sep. 6, 2019, averaged 172.87% of book and 181.24% of tangible book and had a median of 19.82x last-12-months earnings on an aggregate basis.

RBB Bancorp will enter Cook County, Ill., with three branches, which will be ranked no. 64 with a 0.05% share of approximately $335.26 billion in total market deposits.

RBB Bancorp had total assets of $2.80 billion, and Pacific Global Bank had total assets of $223.3 million, both as of June 30, according to S&P Global Market Intelligence data.

The Findley Group is RBB Bancorp's financial adviser in the deal, while Loren P. Hansen APC is its legal counsel. Janney Montgomery Scott LLC is PGB's financial adviser, while Barack Ferrazzano Kirschbaum & Nagelberg LLP is its legal adviser.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, click here. To create custom maps, click here.

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