Shareholders of San Diego Trust Bank approved the sale of the $211 million-asset bank to Irvine-based Premier Pacific Bancorp at a recent special shareholders meeting, with more than 90 percent voting for the sale.
The transaction, first announced in March, received all the required regulatory approvals in April, and is expected to be officially completed by the end of the month, said Steven Gardner, PPB chief executive officer.
PPB paid an aggregate $30.6 million for the 10-year old San Diego Trust, or 1.19 times the bank’s tangible book value, an above average price.
Gardner said it was right in the median range for most bank deals over the past year or so, and a fair price given SDT’s deposit base, its business banking focus in a great market, clean loan portfolio and clear securities portfolio.
PPB, with about $1.4 billion in assets, said it’s keeping all three of SDT’s branches and most of its staff except for CEO Mike Perry who walks away with a golden parachute that could pay nearly $7 million.
Gardner says SDT should more than double in size in the next two to three years. It’ll be looking to hire new business bankers to help in that expansion soon, he said.
— Mike Allen