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The regional bank is expanding into the Golden State's central coast region with its first open-bank deal in five years.
April 10
PacWest Bancorp has outbid Umpqua Holdings to buy American Perspective Bank.
PacWest Bancorp (PACW) will buy American Perspective for $58 million in cash, trumping a $44 million offer that Umpqua (UMPQ) made for the San Luis Obispo, Calif., company
Disruptive bids have been a rarity since the financial crisis. PacWest, which is based in Los Angeles, approached American Perspective after the first deal was announced, offering a "significantly higher price," the companies said in a late Monday press release. Under the terms of its agreement with Umpqua, American Perspective apparently was allowed to enter into discussions with other banks.
American Perspective will pay Umpqua a $1.6 million termination fee by the end of May.
"In entering into this agreement with PacWest, the board of American Perspective Bank has both obtained the highest value for our shareholders and also found an excellent partner for our customers and employees going forward," said Tom Madden, the seller's chairman, in a press release.
PacWest, which has $5.4 billion in assets, will gain two branches and a loan-production office, and $264 million in assets. The deal is expected to close in the third quarter.
“American Perspective Bank is a well-run bank in a strong market," Ray Davis, Umpqua's president and CEO, said in a press release. "Our offer would have added value to their customers, employees and communities, and was priced well for our shareholders. Umpqua Bank has a highly disciplined method to valuing acquisitions for the benefit of our company and shareholders for the long-term. We will not waver from that approach. We think highly of the American Perspective Bank team and wish them all the best.”
