In what would be just the second acquisition in its 49-year-history, FNB Bancorp in South San Francisco has struck a deal to buy Oceanic Bank Holding in San Francisco.
The $716 million-asset FNB, the parent of First National Bank of Northern California, said Monday that it is buying Oceanic for roughly $27.8 million in cash. The deal is expected to close in the third quarter and should be immediately accretive to earnings, FNB said Monday.
FNB's only other acquisition was in 2005, when it bought Sequoia National Bank in San Francisco.
The $169 million-asset Oceanic has two branches in San Francisco and one in Guam. At Dec. 31, it had $117 million in net loans and $120 million in total deposits. For 2011, Oceanic's net operating income was $1.3 million and noncurrent loans totaled 4.2%, according to data from the Federal Deposit Insurance Corp.
First National Bank has a dozen branches in San Mateo and San Francisco counties, including a new one that it opened last year in San Francisco. It also has a loan production office in Sunnyvale, Calif.
"The uniting of Oceanic Bank with First National Bank of Northern California will complement the organic expansion of our branch system that is already underway," Tom McGraw, chief executive at First National Bank of Northern California, said in a news release.
