In the merger each share of First Mountain Bank common stock will be exchanged for a combination of $1.05 in cash, subject to reduction should the book value per share as calculated under the merger agreement fall below $8.15, and one share of PBB Bancorp common stock. The total value of the merger consideration is approximately $13.4 million.
The combined bank will continue to serve its Los Angeles County and San Bernardino County customer base and all existing branches of both banks will remain open after the merger. On a pro forma basis, based on financial information at March 31, 2015, the combined bank would have total assets of approximately $380 million and total deposits of approximately $300 million.
The merger is subject to customary closing conditions, including the receipt of all regulatory approvals and the approval of the shareholders of both PBB Bancorp and First Mountain Bank.
"This is an exceptional opportunity to combine two well-respected banks that share a deep commitment to their local communities," said John Polen, President and Chief Executive Officer of PBB Bancorp and Premier Business Bank.
"The merger of Premier Business Bank and First Mountain Bank provides an exciting future for customers, shareholders, employees and the communities in which the combined bank will operate. The combined institution will continue to provide the same level of outstanding personalized banking service, to which the customers of both institutions have been accustomed."
Vince Smith, Chairman of First Mountain Bank, said, "The combination of First Mountain Bank and Premier Business Bank produces tremendous benefits for customers and shareholders.
"First Mountain Bank and Premier Business Bank share an equal focus on quality customer service, and our customers will benefit from enhanced capital strength and product offerings. First Mountain Bank shareholders will be exchanging their shares for shares of PBB Bancorp which have potential for greater overall returns."
