First Foundation, a financial services company with two wholly-owned operating subsidiaries, First Foundation Advisors and First Foundation Bank, signed a definitive merger agreement to acquire PBB Bancorp.

The transaction is expected to close in Q2/18 and is subject to customary closing conditions, including obtaining approval by PBB Bancorp’s shareholders and bank regulatory authorities.

PBB Bancorp is the parent company of Premier Business Bank and its community bank divisions, Premier Bank of Palos Verdes and First Mountain Bank. It is a California state-chartered bank with $587 million in total assets as of September 30, 2017 and six branch offices and a SBA loan center located in Southern California. Upon the closing of the transaction, Premier Business Bank will be merged with and into First Foundation Bank.

“We are pleased to announce this strategic acquisition,” said Scott F. Kavanaugh, CEO of First Foundation. “Premier Business Bank has built a reputation as a strong banking partner for business owners and real estate investors, which makes it a great fit for First Foundation. Our combined firm will be well-positioned for growth in Southern California. We look forward to welcoming the employees, clients and shareholders of Premier Business Bank to the First Foundation family.”

PBB Bancorp shareholders will receive 1.05 shares of First Foundation common stock in exchange for each share of PBB Bancorp. The 100% stock transaction is valued at approximately $106 million in aggregate, based on a closing price for First Foundation’s common stock of $19.04 as of December 18, 2017, and the value per share for a PBB Bancorp shareholder is $19.99. The value of the merger consideration will fluctuate based on First Foundation’s common stock price.

The merger with PBB Bancorp will become the fifth acquisition for First Foundation, which acquired Community 1st Bank in the Greater Sacramento area on November 10, 2017, two branches in Seal Beach and Laguna Hills from Pacific Western Bank on December 12, 2016, Pacific Rim Bank in Honolulu on June 16, 2015 and Desert Commercial Bank in Palm Desert on August 15, 2012.

First Foundation was advised by Sandler O’Neill + Partners. Sheppard, Mullin, Richter & Hampton served as legal counsel. PBB Bancorp was advised by and received a fairness opinion from MJC Partners, while King, Holmes, Paterno & Soriano served as legal counsel.