RBB Bancorp in Los Angeles is expanding into the Chicago market.
The $2.8 billion-asset company said in a press release Friday that it will buy PGB Holdings for $32.5 million in cash. The deal is expected to close in the first quarter.
RBB focuses on the Chinese-American communities in southern California, Las Vegas and New York. PGB, the $223 million-asset parent of Pacific Global Bank, has three branches in the Chicago's Chinatown and Bridgeport neighborhoods.
"Pacific Global is an excellent cultural fit with RBB, as we have complementary business models, strong residential mortgage loan production platforms, and a focus on the Chinese-American market," Alan Thian, RBB's chairman, president and CEO, said in the release.
RBB said it expects the transaction to be accretive to its 2020 earnings per share, based on plans to cut about 30% of PGB's annual noninterest expenses. It should take about three years for RBB to earn back any dilution to its tangible book value.
Findley Group and Loren P. Hansen advised RBB. Janney Montgomery Scott and Barack Ferrazzano Kirschbaum & Nagelberg advised PGB.
