In premarket session on the last check today, First Choice Bancorp (NASDAQ: FCBP) shares advanced 2.85% to $31.77. Last trading session, FCBP stock gained 27.24 percent to close at $30.92. The value of the FCBP stock fluctuated between $29.50 and $31.53. The FCBP stock shot up following the announcement of joining a merger with a similar firm.
Merger in brief:
The bank holding company for First Choice Bank is First Choice Bancorp, headquartered in Cerritos, California. Getting a loan from FCBP is like getting a loan from another bank. FCBP is a Preferred Small Business Administration (SBA) Lender. We serve mostly business and consumer clients and are a commercial and private banking institution. They’re also an SBA-approved lender. There are eight full-service branches and two loan production offices of the FCBP throughout Los Angeles, Orange, and San Diego counties.
It was announced Monday after market close that Enterprise Financial Services Corp (NASDAQ: EFSC) along with its subsidiary Enterprise Bank & Trust (“EB&T”) and First Choice Bancorp (FCBP) and its subsidiary First Choice Bank (“First Choice”) had entered into a definitive merger agreement.
- Under the agreement, FCBP will be merged into EFSC in an all-stock transaction.
- Based on the merger agreement, FCBP will merge with and into EFSC, followed by First Choice merging with and into EB&T.
- The deal is valued at approximately $397.7 million, worth approximately $33.40 per FCBP share, with EFSC and EB&T the surviving entities.
- Based on the closing price on April 23, 2021, for EFSC’s common stock, the acquisitions amount was offered.
- As of March 31, 2021, the combined company would have consolidated total assets of approximately $12.7 billion.
Fate of FCBP shareholders:
It is expected that EFSC will generate a rate of return on their investment of approximately 21%. First Choice Bancorp (FCBP) shareholders should own approximately 20% of the outstanding shares of the combined company while existing EFSC shareholders should own approximately 80%.