Popular Inc. announced Monday that Popular Community Bank, its U.S. banking subsidiary, completed the previously announced sale of its California regional operations to Banc of California, National Association a wholly owned subsidiary of Banc of California Inc.
As part of the transaction, PCB sold its 20 branches in the Los Angeles and Orange County areas, including approximately $1.1 billion in loans and $1.1 billion in deposits.
The transaction is expected to result in a net premium of approximately $4 million, before customary transaction related costs, the financial institution said.
This transaction is part of the previously announced strategic reorganization of Popular Inc.’s U.S. operations, which includes the sale of PCB’s regional operations in California, Illinois and Central Florida and the centralization of certain back office operations in Puerto Rico and New York. With the reorganization, PCB will strengthen its mainland U.S. presence, by concentrating on the New York, New Jersey, and South Florida markets.
“With this transaction, Popular completes the sales of all three regions as planned and will focus its efforts on completing the back office centralization and on strengthening PCB’s presence in the selected markets,” the bank said in a statement.
RBC Capital Markets, LLC acted as financial advisor to Popular. Sullivan & Cromwell LLP, New York, NY, and Frandzel Robins Bloom & Csato, L.C., Los Angeles, CA, acted as legal counsels to Popular.