HomeStreet To Buy Orange County Business Bank

(RTTNews) - HomeStreet Inc (HMST) on Monday agreed to buy Orange County Business Bank (OCBB.OB), a California banking corporation.

As per the terms of the deal, HomeStreet pay Orange County $11.70 per share, or a total value of $55.3 million with $5.5 million paid in cash and the remainder in HomeStreet common stock.

The deal was approved by the boards and is expected to close late in the fourth quarter of 2015 or early in the first quarter of 2016.

Orange County, based in Irvine, California, has about $200 million in assets and total gross loans of more than $128 million as of June 30.

On a pro forma basis, the combined company will have about $5.01 billion in assets based on June 30 balances. Currently, the two companies together have a network of 112 retail deposit branches and stand-alone lending centers in eight states.

The deal provides for an adjustment to the number of shares of HomeStreet stock issuable in the transaction if HomeStreet's average closing stock price, as measured during a ten-day trading day period ending on and excluding the fifth day prior to the closing date, falls outside a range of 90 percent to 115 percent of the average closing price measured during such a period prior to the signing date.