BayCom to buy Pacific Enterprise in Southern California

BayCom in Walnut Creek, Calif., has agreed to buy Pacific Enterprise Bancorp in Irvine, Calif.

The $2.1 billion-asset BayCom said in a press release Tuesday that it will pay $53.1 million in stock for the $647 million-asset Pacific Enterprise. The deal, which is expected to close in the first quarter, priced Pacific Enterprise at 87.1% of its tangible book value.

The transaction will expand BayCom’s presence in Southern California. Pacific Enterprise has $569 million of loans and $424 million of deposits.

Dennis Guida, Pacific Enterprise’s chairman, is expected to join the board of BayCom unit United Business Bank.

“From a strategic perspective, we think Pacific Enterprise Bank is a great fit,” George Guarini, BayCom’s president and CEO, said in the release. “The transaction will expand both our presence in Southern California and the breadth of our resources in the area of SBA and other government-guaranteed lending products.”

The deal is expected to by 6% to 8% accretive to BayCom’s earnings, excluding merger-related expenses. It should be immediately accretive to BayCom’s tangible book value.

BayCom said it plans to cut about 30% of Pacific Enterprise’s annual noninterest expenses.

BayCom was advised by Silver, Freedman, Taff & Tiernan and Janney Montgomery Scott. Pacific Enterprise was advised by Sheppard Mullin Richter & Hampton and Hovde Group.