First Community Agrees to Buy Bank of Coronado

RANCHO SANTA FE, CA-First Community Bancorp, the locally based bank holding company, has agreed to buy Bank of Coronado, having recently inked a definitive agreement and plan of merger to purchase all of the Coronado-based bank’s outstanding common stock.

Bank of Coronado, which has $77.2 million in assets, will be acquired for roughly $11.7 million, as First Community has agreed to pay $14.15 per share in cash to the holders of the outstanding common shares and options to purchase common shares. This price represents “approximately 1.90 times Bank of Coronado’s book value at June 30, 2002,” according to a recently issued statement by First Community. The merger, which is subject to customary conditions like the approval of the Bank of Coronado shareholders, is expected close in the first quarter of 2003. Once acquired, Bank of Coronado will be merged with First National Bank, a San Diego-based wholly owned subsidiary of First Community that was purchased on Sept. 10, 2002.