Mission Hills Mortgage Bankers sold as part of $17 million deal
Mortgage and refinance services provider Mission Hills Mortgage Bankers will be sold alongside its parent company, Gateway Business Bank, in a $17 million transaction. The buyer, Chula Vista, Calif.-based First PacTrust Bancorp Inc. (FPTB), agreed to acquire all of the assets and outstanding shares of Gateway Business Bank's holding company, Cerritos, Calif.-based Gateway Bancorp. The transaction will include Mission Hills Mortgage Bankers' $190 million in total assets and $156.4 million in deposits. After the banks are merged, the combined firm will have more than $1 billion in assets and 14 bank branches across Southern California as well as 22 loan production offices in California, Arizona and Oregon. The merger still has to be approved by Gateway shareholders and regulators. The deal is expected to be finalized in the second half of 2011. "The addition of Mission Hills’ strong and well-respected originations team will enhance the quality and profitability of Pacific Trust Bank’s residential mortgage business while providing significant strategic and financial synergies," said Gregory Mitchell, president and CEO of First PacTrust. "We expect that these product and service enhancements will provide significant benefits to our employees, customers and shareholders, and that the transaction will be immediately accretive to First PacTrust Bancorp’s tangible book value and earnings.” Write to Kerri Panchuk.