(By Balaseshan) Pacific Premier Bancorp Inc. (NASDAQ: PPBI), the holding company of Pacific Premier Bank, said it has received regulatory approval for its acquisition of First Associations Bank, a Texas-chartered bank located in Dallas, Texas.
The company received regulatory approval from the Federal Reserve Bank of San Francisco and the California Department of Financial Institutions.
The consummation of the acquisition of First Associations Bank (FAB) remains subject to receipt of regulatory approval from the Texas Department of Banking, the approval of the FAB shareholders and the satisfaction of other closing conditions.
The FAB acquisition, which includes $356.2 million in total assets and $305.5 million in total deposits at September 30, 2012, will strengthen the Pacific Premier Bank's core deposit generating capabilities to fund future loan growth.
In connection with the signing of the definitive merger agreement on October 15, the directors and executive officers of FAB and an advisory director of FAB entered into shareholder agreements with Pacific Premier pursuant to which they have agreed to vote all of their shares in favor of the definitive merger agreement.
The directors and executive officers of FAB and an advisory director of FAB collectively own and have the power to vote about 36% of the outstanding shares of FAB common stock. Pacific Premier anticipates that the FAB acquisition will be consummated in the first quarter of 2013.
"Adding FAB's niche focused business of serving homeowners associations (HOA) and HOA management companies nationwide will complement our existing franchise by providing the Bank with a valuable source of low-cost core deposits that are expected to increase the Bank's existing deposit base and lower its overall funding cost," said Steven Gardner, Chief Executive of PPBI.
PPBI closed Thursday's regular session up 0.58% at $10.47. The stock has been trading between $6.10 and $11.49 for the past 52 weeks.