San Diego-based Bank of Southern California NA agreed to acquire Rancho Santa Margarita, Calif.-based CalWest Bancorp in an all-cash deal valued at about $32 million.
Bank of Southern California will pay 43 cents per CalWest Bancorp common stock under the terms of the deal. The deal is expected to close in the first quarter of 2020.
As part of the deal, CalWest Bancorp unit Calwest Bank will merge with Bank of Southern California.
S&P Global Market Intelligence calculates the deal is 183.3% of common equity and 183.3% of tangible common equity and 23.9x earnings, on an aggregate basis. The deal value is 13.64% of assets, 15.30% of deposits and the tangible book premium to core deposits ratio is 7.17%.
S&P Global Market Intelligence valuations for bank and thrift targets in the West region between Oct. 21, 2018, and Oct. 21, 2019, averaged 172.15% of book and 177.40% of tangible book and had a median of 15.61x last-12-months earnings, on an aggregate basis.
Bank of Southern California will expand in Orange County, Calif., by three branches to be ranked no. 42 with a 0.16% share of approximately $128.28 billion in total market deposits. It will also enter San Bernardino County, Calif., with one branch to be ranked no. 30 with a 0.07% share of approximately $25.27 billion in total market deposits.
Nathan Rogge will continue to serve as Bank of Southern California's president and CEO and the existing bank management team will continue in their current roles at the combined company.
As of June 30, Bank of Southern California had total assets of $766.7 million and CalWest Bancorp had total assets of $234.4 million, according to S&P Global Market Intelligence data. The combined company will have pro forma assets of about $1.1 billion and capital of about $120 million, the companies said in a news release.
MJC Partners LLC is Bank of Southern California's financial adviser in the deal, while Duane Morris LLP is the legal counsel. Janney Montgomery Scott LLC is CalWest Bancorp's financial adviser and Stuart Moore Staub is its legal counsel.