"[We] acquired the common stock because [we] believe the common stock is undervalued," says PL Capital of its 7.5% stake in Bank of California (BANC +0.2%). "The PL Capital Group also has significant concerns and questions about the company’s corporate governance, operating performance, financial projections and compensation plans. PL Capital Group’s intent is to engage in a dialogue with the management and board of the company to address these concerns and questions. If needed, the PL Capital Group will assert its stockholder rights."
As tipped last night, Popular (BPOP) inks deals to sell its operations in Chicago, Southern California, and Central Florida, leaving the lender to concentrate its U.S. mainland business in New York and South Florida.
Together the deals include 41 branches, about $1.8B in related loan portfolios, and about $2.1B in deposits. The Chicago buyer is First Midwest Bank (FMBI), the California buyer is Banc of California (BANC), and Florida is Harbor Community Bank.
The deal will include the closing of Popular's mainland headquarters in Rosemont, IL along with an Orlando office. Off the roughly 550 positions at those locations, 100 will be move to other mainland offices and 200 to Puerto Rico.
Popular says the sales will results in a net premium of about $25M along with a goodwill writedown of $160M and restructuring charges of $53M.
Banc of California Inc is a is a financial holding company and the parent of Banc of California, National Association which offers banking and financial services through 15 branches in California and 68 producing mortgage loan production offices.