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PSBK Book Value is $4.90.
PBSK Announces Financial Results for the Second Quarter of 2012 (7/19/12)
RIVERSIDE, Calif.--(BUSINESS WIRE)--Premier Service Bank, Riverside, California (OTC BB:PSBK) today announced its unaudited financial results for the second quarter of 2012.
For the quarter ended June 30, 2012, the bank reported a net loss of $166 thousand, or <0.14> per diluted share, compared to a net loss of $631 thousand, or <$0.51> per diluted share for the quarter ended June 30, 2011. The improvement in earnings between the respective periods is primarily attributed to the decrease in the provision for loan losses, partially offset by the decrease in net interest income as a result of the lower amount of total loans. There was no provision to the allowance for loan losses for the second quarter of 2012, due to the recovery of prior charge-offs and the decrease in the loan portfolio, compared to a provision of $884 thousand for the same period in 2011.
At June 30, 2012, the Bank had $5.5 million of non-performing loans, representing 5.70% of the Bank’s total loans, compared to $6.3 million of non-performing loans, or 5.66% of total loans, at June 30, 2011. The Bank had foreclosed real estate of $3.2 million at June 30, 2012, compared to foreclosed real estate of $4 million at June 30, 2011. At June 30, 2012, non-accrual loans totaled $5.5 million, representing 5.70% of total loans at that date, compared to non-accrual loans of $6.3 million at June 30, 2011, representing 5.66% of total loans at that date. The allowance for loan losses totaled $2.91 million at June 30, 2012, or 3.03% of total loans as of that date, compared to $2.80 million at June 30, 2011, or 2.51% of total loans as of that date.
At June 30, 2012, the Bank had total assets of $137 million, representing a decrease of $9.6 million or 6.52% compared to total assets of $146.7 million at June 30, 2011. The Bank had $16 million in FHLB borrowings at June 30, 2012, representing a decrease of $4 million or 20% from FHLB borrowings of $20 million at June 30, 2011. Total deposits at June 30, 2012 were $110 million, representing a decrease of 3.77% compared to total deposits of $114.3 million at March 31, 2011. Non-interest bearing demand deposits totaled $42.4 million at June 30, 2012, representing 38.55% of total deposits at that date, compared to $43.8 million of non-interest bearing demand deposits at June 30, 2011, which represented 38.32% of total deposits at that date.
The Bank’s gross loan portfolio decreased to $96.1 million at June 30, 2012, representing a 13.83% decrease compared to gross loans of $111.5 million at June 30, 2011. Unfunded credit commitments stood at $7.9 million at June 30, 2012, representing a 24.77% decrease compared to unfunded commitments of $10.5 million at June 30, 2011.
The Bank’s net interest margin for the quarter ended June 30, 2012 was 4.74%, a decrease of 39 basis points as compared to the net interest margin of 5.13% for the second quarter of 2011.
Total shareholders’ equity at June 30, 2012 was $10.3 million, representing a decrease of $1.4 million, or 11.58% compared to total shareholders’ equity of $11.7 million at June 30, 2011. On December 1, 2010, the Bank entered into a Consent Order with the Federal Deposit Insurance Corporation and the California Department of Financial Institutions. The Consent Order requires the Bank, within 90 days from the effective date of the Order (by February 28, 2011), to increase and thereafter maintain its Tier I capital in such an amount to ensure that the Bank’s leverage ratio equals or exceeds 9.50% and its total risk-based capital ratio equals or exceeds 12%. As of June 30, 2012, these capital ratios were 7.39% and 11.27%, respectively. As a result, the Bank was not in compliance, as of June 30, 2012, with the capital ratios required by the Consent Order. Although the Bank was not in compliance with the capital requirements of the Consent Order as of June 30, 2012, the Bank was adequately capitalized as of that date under applicable regulatory guidelines.
On February 27, 2012, the Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with First California Bank, a state chartered commercial bank (“FCB”), and its holding company, First California Financial Group, Inc. Nasdaq: (FCAL) (“FCAL”), pursuant to which the Bank will merge into FCB (the “Merger”). The transaction is subject to regulatory and shareholder approvals and customary closing conditions. If the Merger closes as anticipated, the Bank’s capital issues will be resolved. If the Merger does not proceed for any reason, in order to comply with the capital requirements of the Consent Order, the Bank will need to complete a new capital offering or find another solution which improves its capital ratios, such as finding a new merger partner, arranging for the possible sale of the Bank or a transfer of control of the Bank, or taking steps to decrease the asset size of the Bank until the ratios are in compliance with the Consent Order. The Bank believes that the Merger will close as anticipated and that there will be no need to implement any such contingency plans.
The Bank’s President and Chief Executive Officer, Kerry L. Pendergast, stated, “We are pleased to report a continuing decline in delinquent loans, which, in most instances, is fairly representative of the directional trends we see occurring within the Bank’s loan portfolio. For the quarter ended June 30, 2012, the Bank’s delinquency ratio was 2.32%, compared to 3.65% at March 31, 2012; it also compared favorably to the 4.48% delinquency ratio reported at June 30, 2011.”
Pendergast went on to say, “The Bank’s allowance for loan losses totaled $2.91 million at June 30, 2012 or 3.03% of total loans as of that date, with a reported surplus of $957 thousand. Year to date provision expenses have totaled $225 thousand, as compared to provision expenses totaling $1.609 million for the same six-month period ended June 30, 2011. Improving delinquency ratios, “newly identified - problem loans” trending downward and a general decline in borrower issues would suggest that the Bank’s loan portfolio is beginning to stabilize.”
Pendergast said in closing, “While the level of non-performing loans increased by $211 thousand or 2.50% for the quarter, when compared to June 30, 2011, the overall level of non-performing loans has been reduced by $1.684 million or 16.28%. Management is actively engaged in the oversight and disposition of OREO and believes that the market in the Inland Empire is positioned to accommodate more sales activity.”
Premier Service Bank is a California state-chartered bank with two offices, its headquarters office in Riverside and a full-service banking office in Corona. The Bank provides commercial banking services, including a wide variety of checking accounts, investment services with competitive deposit rates, on-line banking products, and real estate, construction, commercial and consumer loans, to small and medium-sized businesses, professionals and individuals. Additional information about Premier Service Bank is available at its website at www.premierservicebank.com.
http://www.businesswire.com/news/home/20120719006717/en/Premier-Service-Bank-Announces-Financial-Results-Quarter
FCAL and PSBK Amend Definitive Merger Agreement (7/10/12)
WESTLAKE VILLAGE, Calif. & RIVERSIDE, Calif.--(BUSINESS WIRE)--First California Financial Group, Inc. (Nasdaq:FCAL), or FCAL, the holding company of First California Bank, or FCB, and Premier Service Bank (OTCBB:PSBK), or PSBK, today announced the signing on July 9, 2012 of Amendment No. 1 (the “Amendment”) to their definitive agreement dated February 27, 2012 (the “Merger Agreement”), pursuant to which PSBK will merge into FCB. The transaction is now expected to close late in the third quarter or early in the fourth quarter of 2012, subject to regulatory and shareholder approvals and other customary closing conditions.
Under the terms of the Amendment, PSBK’s shareholders will continue to receive, subject to certain adjustments, consideration of $2.0 million, or approximately $1.59 per share, in the form of FCAL common stock. As a result of increases in the value of FCAL common stock since the signing of the original Merger Agreement, the number of shares of FCAL common stock to be received by the PSBK shareholders has been reduced from 477,269 shares to 293,626 shares, using a value of $6.81 per share. This change also resulted in a reduction in the exchange ratio from 0.3784 FCAL shares to 0.2328 FCAL shares for each share of PSBK common stock outstanding. The Amendment increased the upper threshold for FCAL’s Closing Price, as defined in the Merger Agreement, to $7.83 from $5.03, where if the Closing Price exceeds the upper threshold, FCAL may terminate the Merger Agreement without liability. The Amendment also increased the lower threshold for FCAL’s Closing Price to $5.79 from $3.35, where if the Closing Price does not reach the lower threshold, PSBK may terminate the Merger Agreement without liability. Last, the Amendment extended the outside closing date for the Merger to December 31, 2012 from August 31, 2012.
“As evidenced by the Amendment, all the parties remain committed to close the transaction with PSBK. We continue to look forward to the opportunity to expand FCB’s presence in the Riverside and Corona markets and add a talented group of bankers,” said C. G. Kum, President and Chief Executive Officer of FCAL. “PSBK continues to have a strong customer base and fits into our desired geographic footprint extremely well. We look forward to closing the transaction as soon as possible and making PSBK part of the FCAL family.”
Kerry L. Pendergast, President and Chief Executive Officer of PSBK, stated, “PSBK is pleased that FCAL and FCB were willing to amend the definitive agreement so that we may present the proposed transaction to our shareholders without a pricing issue caused by the increases in the value of FCAL’s common stock since the definitive agreement was signed. Our shareholders continue to receive aggregate consideration of $2.0 million, but no longer need to be concerned that FCAL will terminate the agreement because its stock price exceeds $5.03, the maximum price imposed by the original definitive agreement. We look forward to working with FCAL to complete the transaction and becoming a part of FCB.” He went on to state, “We continue to believe that FCB’s financial strength, dedication to customer service and retention, and commitment to the markets we serve will make our combined organization highly successful.”
As previously announced, the parties anticipate that Mr. Pendergast will serve after the closing as Market President for the two branch offices of PSBK being acquired as part of the merger and FCB’s branch office in Redlands, California.
FCB has 15 offices throughout Southern California and total assets of $2.0 billion at June 30, 2012 (unaudited). The bank serves small and mid-sized businesses, professionals and entrepreneurs, and high-net-worth individuals with an integrated product set of private client services, business banking and treasury management capabilities.
PSBK has two offices, its headquarters in Riverside and a full service branch in Corona, and has total assets of $139 million as of March 31, 2012 (unaudited). The bank offers a broad spectrum of products and services to corporate, professional and individual customers.
Keefe, Bruyette & Woods, Inc. continues to act as financial advisor and Horgan, Rosen, Beckham & Coren, L.L.P. continues to serve as legal advisor to FCAL and FCB. Hovde Securities LLC continues to act as financial advisor and Richard E. Knecht A Professional Corporation continues to serve as legal advisor to PSBK.
Additional Information
In connection with the proposed merger, FCAL will file with the Securities and Exchange Commission a Registration Statement on Form S-4 that will include a Proxy Statement of PSBK and a Prospectus of FCAL, as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS AND INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
In addition, when the registration statement and other related documents are filed by FCAL with the Securities and Exchange Commission, they may be obtained for free at the Securities and Exchange Commission’s website at http://www.sec.gov, on the NASDAQ website at http://www.nasdaq.com and from either the FCAL website at http://www.fcalgroup.com or at the PSBK website at http://www.premierservicebank.com.
FCAL, PSBK and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies in connection with the merger. Information about the directors and executive officers of FCAL and PSBK and information about any other persons who may be deemed participants in this transaction will be included in the proxy statement/prospectus. Information about FCAL’s directors and executive officers can be found in the proxy statement for FCAL’s annual meeting of shareholders filed with the Securities and Exchange Commission on April 21, 2011. Information about PSBK’s directors and executive officers can be found in the proxy statement for PSBK’s 2011 annual meeting of shareholders available on its website at http://www.premierservicebank.com/corp/investor_relations.html. Free copies of these documents can be obtained from the Securities and Exchange Commission, FCAL or PSBK using the website information above.
About Premier Service Bank
PSBK is a California state-chartered bank with two offices, its headquarters office in Riverside and a full-service banking office in Corona. PSBK provides commercial banking services, including a wide variety of checking accounts, investment services with competitive deposit rates, on-line banking products, and real estate, construction, commercial and consumer loans, to small and medium-sized businesses, professionals and individuals. Additional information about PSBK is available at its website at www.premierservicebank.com.
About First California
FCAL is the holding company of FCB. Founded in 1979 and with nearly $2 billion in assets, FCB serves the comprehensive financial needs of small- and middle-sized businesses and high net worth individuals throughout Southern California. Led by an experienced team of bankers, FCB is committed to providing the best client service available in its markets, offering a full line of quality commercial banking products through 15 full-service branch offices in Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo and Ventura counties. FCAL’s website can be accessed at www.fcalgroup.com. For additional information on FCB’s products and services, visit www.fcbank.com.
Forward-Looking Information
This press release contains certain forward-looking information about FCAL, FCB and PSBK (“the Companies”) that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to, the monitoring of and management of risks in the Companies’ loan portfolio, the adequacy of sources of liquidity to support the Companies’ operations and strategic plans, the monitoring of and response to changing market conditions, and the status of the economy in the Southern California communities served by the Companies. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Companies. The Companies caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues are lower than expected, credit quality deterioration which could cause an increase in the provision for credit losses, the Companies’ ability to complete future acquisitions, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all, changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which the Companies do or anticipate doing business are less favorable than expected, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of the Companies to retain customers, changes in the bank regulatory environment, demographic changes, demand for the products or services of the Companies as well as their ability to attract and retain qualified people, competition with other banks and financial institutions, the Companies’ level of small business lending, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, the Companies' results could differ materially from those expressed in, or implied or projected by such forward-looking statements. The Companies assume no obligation to update such forward-looking statements. For a more complete discussion of risks and uncertainties, investors and security holders are urged to read the section titled “Risk Factors” in the Annual Reports on Form 10-K filed by FCAL with the Securities and Exchange Commission (“SEC”) and the section titled “Management Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Reports on Form 10-K filed by PSBK with the Federal Deposit Insurance Corporation (“FDIC”), and any other reports filed by them with the SEC and the FDIC, respectively. The documents filed by FCAL with the SEC may be obtained at the SEC's website at www.sec.gov. These documents may also be obtained free of charge from FCAL by directing a request to: First California Financial Group, Inc., 3027 Townsgate Road, Suite 300, Westlake Village, CA 91361, Attention: Investor Relations [Telephone (805) 322-9655]. Documents filed by PSBK with the FDIC may be obtained at the FDIC’s website at www2.fdic.gov/efr/. PSBK documents may also be obtained free of charge from PSBK by directing a request to: Premier Service Bank, 3637 Arlington Avenue, Suite B, Riverside, CA 92506, Attention Investor Relations (Telephone (951) 274-2400).
Contacts
At First California:
Ron Santarosa, 805-322-9333
or
At Premier Service Bank:
Kerry Pendergast, 951-274-2400
http://www.businesswire.com/news/home/20120710006997/en/California-Financial-Group-Premier-Service-Bank-Amend
PACW makes unsolicited offer for FCAL (5/09/12)
PBSK should be held. This could be a "win-win".
FCAL would most likely have to pay a termination fee, if the PSBK acquistion does not advance.
In the event PACW does take over FCAL, PACW would probably want to add those PSBK locations. PACW would have to approve the acquisition of PSBK by FCAL, which would be completed prior to PACW/FCAL.
If PACW does not have any interest in adding PSBK, someone else would probably come along since it was already looking for a buyer.
Is the $2MM is set in stone not the stock exchange rate?
Not so fast!
Book value per share is $5.05 at 3/31/12.
Down from $5.22 at 12/31/12.
PSBK Announces Financial Results for the First Quarter of 2012 (4/27/12)
RIVERSIDE, Calif.--(BUSINESS WIRE)--Premier Service Bank, Riverside, California (OTCBB:PSBK) today announced its unaudited financial results for the first quarter of 2012.
For the quarter ended March 31, 2012, the bank reported net loss of $190 thousand, or <$0.16> per diluted share, compared to net loss of $569 thousand, or <$0.48> per diluted share for the quarter ended March 31, 2011. The improvement in earnings between the respective periods is primarily attributed to the decrease in provision for loan losses. The provision to the allowance for loan losses for the first quarter of 2012 totaled $225 thousand, compared to $725 thousand for the same period in 2011.
At March 31, 2012, the Bank had $5.5 million of non-performing loans, representing 5.53% of the Bank’s total loans, compared to $8.0 million of non-performing loans, or 7.08% of total loans, at March 31, 2011. The Bank had foreclosed real estate of $3.0 million at March 31, 2012, compared to foreclosed real estate of $3.9 million at March 31, 2011. At March 31, 2012, non-accrual loans totaled $5.5 million, representing 5.53% of total loans at that date, compared to non-accrual loans of $8.0 million at March 31, 2011, representing 7.08% of total loans at that date. The allowance for loan losses totaled $2.75 million at March 31, 2012, or 2.77% of total loans as of that date, compared to $2.56 million at March 31, 2011, or 2.25% of total loans as of that date.
At March 31, 2012, the Bank had total assets of $139 million, representing a decrease of $15.3 million or 9.93% compared to total assets of $154 million at March 31, 2011. The Bank had $16 million in FHLB borrowings at March 31, 2012, representing a decrease of $3 million or 15.78% from the FHLB borrowings of $19 million at March 31, 2011. Total deposits at March 31, 2012 were $111.7 million, representing a decrease of 8.66% compared to total deposits of $122.3 million at March 31, 2011. Non-interest bearing demand deposits totaled $44.2 million at March 31, 2012, representing 39.57% of total deposits at that date, compared to $44.9 million of non-interest bearing demand deposits at March 31, 2011, which represented 36.71% of total deposits at that date.
The Bank’s gross loan portfolio decreased to $99 million at March 31, 2012, representing a 12.85% decrease compared to gross loans of $113.6 million at March 31, 2011. Unfunded credit commitments stood at $7.5 million at March 31, 2012, representing a 46.42% decrease compared to unfunded commitments of $14 million at March 31, 2011.
The Bank’s net interest margin for the quarter ended March 31, 2012 was 4.94%, an increase of 19 basis points as compared to the net interest margin of 4.75% for the first quarter of 2011.
Total shareholders’ equity at March 31, 2012 was $10.5 million, representing a decrease of $1.8 million, or 14.63% compared to total shareholders’ equity of $12.3 million at March 31, 2011. On December 1, 2010, the Bank entered into a Consent Order with the Federal Deposit Insurance Corporation and the California Department of Financial Institutions. The Consent Order requires the Bank, within 90 days from the effective date of the Order (by February 28, 2011), to increase and thereafter maintain its Tier I capital in such an amount to ensure that the Bank’s leverage ratio equals or exceeds 9.50% and its total risk-based capital ratio equals or exceeds 12%. As of March 31, 2012, these capital ratios were 7.42% and 11.09%, respectively. As a result, the Bank was not in compliance, as of March 31, 2012, with the capital ratios required by the Consent Order. Although the Bank was not in compliance with the capital requirements of the Consent Order as of March 31, 2012, the Bank was adequately capitalized as of that date under applicable regulatory guidelines.
On February 27, 2012, the Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”) with First California Bank, a state chartered commercial bank (“FCB”), and its holding company, First California Financial Group, Inc. (“FCAL”)(Nasdaq: FCAL), pursuant to which the Bank will merge into FCB (the “Merger”). The transaction is subject to regulatory and shareholder approvals and customary closing conditions. If the Merger closes as anticipated, the Bank’s capital issues will be resolved. If the Merger does not proceed for any reason, in order to comply with the capital requirements of the Consent Order, the Bank will need to complete a new capital offering or find another solution which improves its capital ratios, such as finding a new merger partner, arranging for the possible sale of the Bank or a transfer of control of the Bank, or taking steps to decrease the asset size of the Bank until the ratios are in compliance with the Consent Order. The Bank believes that the Merger will close as anticipated and that there will be no need to implement any such contingency plans.
The Bank’s President and Chief Executive Officer, Kerry L. Pendergast, stated, “The positive trends exhibited and commented on in the fourth quarter of 2011 extended into the first quarter of 2012. For the quarter, the provision into the Bank’s allowance for loan losses totaled $225,000, as compared to a fourth quarter 2011 provision of $910,000; this resulted in a 75% reduction in the provision expenses on a quarter over quarter basis. Notwithstanding the significant reduction in the provision expense, the Bank’s allowance for loan losses totaled $2.75 million at March 31, 2012 or 2.77% of total loans as of that date; we hope this is an indication that the loan portfolio is beginning to stabilize and that the pace of “newly identified” problems loans is beginning to subside.”
Pendergast went on to say, “In addition to seeing some signs that may indicate stabilization within the loan portfolio, we have also been able to reduce the level of non-performing loans. On a quarter over quarter basis, problem loans have been reduced by $3.4 million or 28.71%; we are hopeful that this trend is an indication that real estate values and economic conditions in the Inland Empire are improving or at least stabilizing. It should also be noted that the Bank’s delinquency ratio for the quarter ended March 31, 2012 was 3.65%, compared to 6.44% at December 31, 2011, perhaps another indication of improving economic conditions for our borrowers.”
Pendergast said in closing, “Management has made a strong effort to reduce the level of non-performing loans within the institution and to dispose of OREO in an orderly, but timely fashion. These efforts have resulted in improvement in the Bank’s performance. Management, in conjunction with the Bank’s lending personnel, will continue to aggressively focus its resources and efforts on these segments of our business.”
Premier Service Bank is a California state-chartered bank with two offices, its headquarters office in Riverside and a full-service banking office in Corona. The Bank provides commercial banking services, including a wide variety of checking accounts, investment services with competitive deposit rates, on-line banking products, and real estate, construction, commercial and consumer loans, to small and medium-sized businesses, professionals and individuals. Additional information about Premier Service Bank is available at its website at www.premierservicebank.com.
Forward-looking Statements
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about Premier Service Bank’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and in the following: Premier Service Bank’s ability to increase its assets, deposits and total loans, control expenses, retain critical personnel, manage interest rate risk, manage technological changes, address regulatory requirements, and other risks discussed from time to time in Premier Service Bank’s filings and reports with the Federal Deposit Insurance Corporation. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and Premier Service Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
For a more complete discussion of risks and uncertainties, investors and security holders are urged to read Premier Service Bank’s annual report on Form 10-K, quarterly reports on Form 10-Q and other reports filed by Premier Service Bank with the FDIC.
http://www.businesswire.com/news/home/20120427006149/en/Premier-Service-Bank-Announces-Financial-Results-Quarter
Proxy Statement to be out May 7th.
http://ir.fcalgroup.com/Cache/c13079546.html
You may be right Pagz. It does sound more and more like the $2MM is set in stone not the stock exchange rate.
Now let me ask you something: If you were a Premier shareholder and not a FCAL holder (prior to the announcement) and you just heard about the merger what would you do with the announcement information?? or what would you like to see happen to the price of your PSBK stock over the next 5 months based on the terms?
I haven't heard any more on this, but my thinking was simply in the wording.
"The $1.8 billion-asset First California said Tuesday that it will pay $2 million, or roughly $1.59 a share, for the $141 million-asset Premier Service Bank. The stock deal translates into an exchange ratio of about 0.38 share of First California stock for each Premier common share."
When a company says it will pay X $MM, that's an exact number. The words "roughly and about" after implies that the ratio will float. Otherwise, I would think it would say something like this:
"The $1.8 billion-asset First California said Tuesday that shareholders will receive 0.38 shares of stock for each Premier common share. As of yesterday's close this translates into roughly $2 million, or $1.59 per share."
Just a thought from what I have seen, obviously not scientific in any form.
2012 Annual Meeting will be postponed to October.
Since a Special Meeting will need to be held in the second quarter, the Annual Meeting would not be necessary if the transaction closes in the third quarter. This would also save PSBK $25,000 to $30,000.
Pendergast forwarded me the shareholder letter.
He also stated that further clarification will be available in the eventual Registration Statement, Proxy Statement and Prospectus.
President and CEO Pendergast was out Friday.
His assistant sent me an e-mail late Friday, stating I should expect a response on Monday (today).
Great question Pagz- The wording on the terms is tricky.
Obviously I'm thinking the exchange ratio (.3784) -stock for stock- remains set but to get another opinion I've asked EI. He's going to shoot PSBK and email tonight for a definitive answer...and he or I will post the answer.
If anyone else wants to do the same DD here are some contacts: If you do please post so we can have good verification/consensus.
For further Information:
At First California call:
Ron Santarosa
805-322-9333
At Premier Service Bank call:
Kerry Pendergast
951-274-2400
Premier Service Bank (Riverside, CA)
3637 Arlington Ave.
Suite B
Riverside, CA 92506
http://www.premierservicebank.com
Phone: 909-274-2400
E-mail: margaret@premierservicebank.com
Chevy,
"Under the terms of the merger agreement, Premier Service Bank’s shareholders will receive, subject to certain adjustments, consideration of $2.0 million, or approximately $1.59 per share, in the form of FCAL common stock. Currently, this would equal 477,269 common shares and result in an exchange ratio of 0.3784 FCAL shares for each share of PSBK common stock outstanding."
Do you know if those adjustments mean merger offer amount? Otherwise, isn't the $1.59 per share set and the exchange ratio just fluctuates with FCAL price per share?
(3/27/2012)
PSBK PPS is $1.50 divide that by .3784 = $3.96
FCAL PPS on this date is$5.38
Buying PSBK today represents a 25.4% discount to buying FCAL.
PSBK indication: $1.35 Bid/$1.40 Ask (2/29/12)
First California Financial Group and Premier Service Bank Sign Definitive Merger Agreement
http://ih.advfn.com/p.php?pid=nmona&article=51400544
Exchange is 0.3784 shares of FCAL for 1 share of PSBK
Current price of PSBK is .95 and FCAL is $4.76
Value =(0.3784)x($4.67)= $1.77
As of EOD 2/28/2012
I will be updating board soon - Nice share structure - just needs volume!
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