Magazine article American Banker

It's Official: FBOP of Ill. Acquiring Calif. Company

Magazine article American Banker

It's Official: FBOP of Ill. Acquiring Calif. Company

Article excerpt

After weeks of speculation, FBOP Corp. of Oak Park, Ill., has finally declared that it is buying the parent company of People's Bank of California.

The $5.4 billion-asset holding company said Monday that it will acquire $3.3 billion-asset PBOC Holdings Inc. of Los Angeles for about $200 million in cash, or $10 per share. The deal is scheduled to close in the second quarter and would more than double FBOP's assets in California.

FBOP, a privately held company, would merge People's Bank into one of its two California subsidiaries, $1.3 billion-asset California National Bank in Los Angeles. It also owns $833 million-asset San Diego National Bank, as well as banks in Illinois and Texas.

"We are pleased to announce this merger, which gives FBOP and California National Bank an opportunity to expand our existing presence in Southern California," Robert M. Heskett, FBOP president, said in a prepared press statement.

The deal, valued at 1.03 times PBOC's book value, is also expected to include the assets of BYL Bancorp in Yorba Linda, Calif. PBOC said last month that it would acquire $322 million-asset BYL for $39 million. BYL chief financial officer Gary Strachn said that sale is scheduled to close in late March or early April.

News of the deal came as no surprise to industry watchers, as FBOP has been steadily gobbling up PBOC's stock over the last month.

FBOP announced last month in separate filings with the Securities and Exchange Commission that it was buying 33% of PBOC's -- a 24% stake from the estate of Bernice Pauahi in Hawaii, and another 9. …

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