First PacTrust Bancorp, Inc. (Nasdaq: BANC) (“First PacTrust”), the holding company for PacTrust Bank, and Manhattan Beach, Calif.-based Beach Business Bank (OTCBB: BBBC) (“Beach”) today jointly announced they have completed their merger, under which Beach shareholders are entitled to receive cash and warrants to acquire First PacTrust common stock with a total value of approximately $39 million.

The banks also announced that at the completion of the merger, Robert M. Franko, president and CEO of Beach prior to the merger, became president of First PacTrust, and Robb Evans, a director of Beach prior to the merger, joined the board of directors of First PacTrust, expanding the board to eight members. In addition, at the completion of the merger, Beach directors Fred Jensen, Jim Gray and Dan Mathis joined the board of directors of PacTrust Bank.

Deal Overview

Buyer: First PacTrust Bancorp, Inc.

Actual Acquirer: First PacTrust Bancorp, Inc.

Target: Beach Business Bank

Deal Type: Bank & Thrift Company

Agreement Date: 8/30/2011

Announcement Date: 8/31/2011

Announced Deal Value ($ M): 37.15

Status: Completed

Completion Date: 7/1/2012

Announced Deal Value Per Share ($ ): 9.12

Beach Business Bank, a Manhattan Beach community bank best known for lending to physicians across the country, is being acquired in a $37.2-million deal by a San Diego County-based community bank.

The buyer, First PacTrust Bancorp, raised $28 million in fresh capital this summer and is expanding into Los Angeles and Orange counties. The Chula Vista-based parent of Pacific Trust Bank agreed in June to buy Cerritos-based Gateway Business Bank, a three-branch institution with a large home-lending arm, for $17 million.

Gregory A. Mitchell, First PacTrust’s chief executive, said he expects to continue acquiring community banks with less than $500 million in assets. Many of these small banks are continuing to wrestle with portfolios of stressed commercial mortgages, which makes it hard for them to do much new business and comply with tighter bank regulations, he said.

First PacTrust Bancorp Inc. on Wednesday said that it will acquire the South Bay’s Beach Business Bank in a cash-and-stock deal valued at roughly $37.4 million.

First PacTrust will pay Beach Business’s shareholders the equivalent of $9.07 a share, a 53 percent premium to the stock’s Tuesday closing price. The Chula Vista parent of Pacific Trust Bank, which operates 11 branches in San Diego and Riverside counties, sees the deal as way to get a toehold in Los Angeles and Orange counties. Beach Business is based in Manhattan Beach and has branches in Long Beach, Torrance and Costa Mesa.

“The acquisition of Beach Business Bank represents a significant milestone in our stated strategy of becoming Southern California’s bank of choice for growing families, small- to mid-sized businesses and high net worth individuals in the communities we serve,” said Chief Executive Greg Mitchell said in a statement.

Two weeks after announcing plans to open its first retail branch in Los Angeles County, First PacTrust Bancorp Inc. in Chula Vista, Calif., has struck its deal to buy a bank there.

The $837 million-asset parent of Pacific Trust Bank said Monday that it is buying Gateway Bancorp in Cerritos, Calif., for $17 million in cash.

The $187 million-asset Gateway is the parent company of Gateway Business Bank, which has three offices in Los Angeles and Orange counties, and Mission Hills Mortgage Bankers, which has 22 loan production centers in California, Oregon and Arizona. In a news release, First PacTrust President and Chief Executive Officer Gregory A. Mitchell said the deal would broaden the company's banking footprint and enable it to "take advantage of market opportunities" in mortgage lending throughout the West Cost.

The deal, expected to close in the second half of this year, would be the first-ever acquisition for First PacTrust, which has grown largely through de novo branching since it converted from a credit union in 2000. Late last year it opened a branch in La Jolla in San Diego County and in May it said would open a branch in Santa Monica, in Los Angeles County.

First PacTrust Bancorp, Inc. (the “Company”) (NASDAQ: FPTB), the holding company for Pacific Trust Bank (the “Bank”), announced today that it has entered into a definitive agreement to purchase all of the issued and outstanding shares of Gateway Bancorp, the privately held holding company for Gateway Business Bank, Cerritos, California. As part of the transaction, First PacTrust will acquire Mission Hills Mortgage Bankers, which was founded in 1969 and is an operating division of Gateway Business Bank. Under the terms of the agreement, shareholders of Gateway Bancorp will receive an aggregate consideration of up to $17 million in cash (subject to certain holdback provisions) upon completion of the transaction. At closing, the combined company is expected to have total assets exceeding $1 billion and will operate through 14 bank branch locations throughout Southern California (including Los Angeles, Orange, Riverside and San Diego Counties) and 22 loan production offices through Mission Hills in California, Arizona and Oregon. The transaction has been approved by Gateway’s shareholders, and the completion of the transaction is subject to regulatory approvals and other customary closing conditions. Assuming satisfaction of these conditions, the acquisition is currently expected to close late in the second half of 2011.

First PacTrust Bancorp, Inc. (NASDAQ: FPTB), the holding company for Pacific Trust Bank, announced today that it has entered into separate subscription agreements with TCW Shared Opportunity Fund V, L.P., COR Capital LLC, St. Cloud Capital LLC, America Start-Up Financial Institutions Investments 1, L.P. and additional select institutional and other accredited investors as part of an aggregate $60 million private placement. Collectively, the investors in the private placement intend to purchase approximately 4,500,000 shares of the Company’s common stock and approximately 920,000 shares of newly designated non-voting common stock, at $11.00 per share. The price per share in the private placement represents a 37.5% premium to the closing price of the Company’s common stock on July 26, 2010 of $8.00 per share.

Hans Ganz, President and Chief Executive Officer of the Company, stated: “We are pleased to expand our shareholder base to include such a strong collection of investors. We plan to use this new capital to, among other things, repay TARP, enhance our management team and grow our franchise throughout Southern California.”