Enterprise Financial Services Doubles Profits and Acquires California Bank | Local company
CLAYTON – Enterprise Financial Services increased its earnings – and presence in California – in the first quarter, prompting President and CEO Jim Lally to call it a “solid start to 2021.”
The Clayton-based company made $ 29.9 million in profits in the first quarter of 2021, up from $ 12.8 million in the same period last year, the company reported on Tuesday.
Enterprise also announced that it acquired First Choice Bancorp from Cerritos, Calif., For $ 397.7 million. First Choice had approximately $ 2.5 billion in total assets, $ 2 billion in loans and $ 1.9 billion in deposits as of March 31. The deal is expected to close in the third quarter of this year, according to a statement.
“I am excited about how this adds to our expected growth prospects and the diversification of our business,” Lally said in a statement. “We got off to a good start in 2021.”
First Choice primarily serves business and consumer clients in various communities and specializes in small to medium business and private banking loans, commercial and industrial loans, and commercial real estate loans. First Choice is a Small Business Administration lender. It has eight full-service branches and two loan production offices in Los Angeles, Orange and San Diego counties in Southern California.
Following approval of the transaction, current Enterprise shareholders will own approximately 80% of the outstanding shares of the combined company, and First Choice shareholders are expected to own approximately 20%.