SOURCE: First California Financial Group

First California Financial Group

December 30, 2010 15:28 ET

First California to Acquire Electronic Banking Solutions Division of Palm Desert National Bank

WESTLAKE VILLAGE, CA--(Marketwire - December 30, 2010) - First California Financial Group, Inc. (NASDAQ: FCAL), the holding company of First California Bank, today announced that First California Bank has entered into a definitive purchase agreement to acquire the Electronic Banking Solutions (EBS) division of Palm Desert National Bank. Terms were not disclosed.

As part of the purchase, First California will acquire Palm Desert National Bank's EBS product and service offering and related back office operations, as well as the customer base that currently produces approximately $3 million in annual revenues from EBS products and services. First California will also assume approximately $55 million of core deposits related to the EBS division at the close of the transaction.

"This acquisition expands our product offering and enables First California to enter the prepaid debit card market," said C. G. Kum, president and chief executive officer of First California Financial Group. "We believe the prepaid card business provides new revenue streams at attractive margins and complements our growth strategy."

To manage the new Electronic Payments Services division, First California will retain the services of James Tingey, Executive Vice President and Division President. Currently, Mr. Tingey is EVP for the EBS division of Palm Desert National Bank where he is responsible for all electronic payment services, including prepaid card programs. He brings more than 25 years of executive management experience in a variety of industries, as well as a distinguished career in law enforcement.

First California expects this transaction to close by the end of the 2011 first quarter.

About First California

First California Financial Group, Inc. (NASDAQ: FCAL) is the holding company of First California Bank. Celebrating 31 years of business in 2010, First California is a regional force of strength and stability in Southern California banking with assets of $1.6 billion and led by an experienced team of bankers. The company specializes in serving the comprehensive financial needs of the commercial market, particularly small- and middle-sized businesses, professional firms and commercial real estate development and construction companies. Committed to providing the best client service available in its markets, First California offers a full line of quality commercial banking products through 18 full-service branch offices in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. The holding company's Web site can be accessed at www.fcalgroup.com. For additional information on First California Bank's products and services, visit www.fcbank.com.

Forward-Looking Information

This press release contains certain forward-looking information about First California that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the expected revenue, expenses, margins and growth potential of the acquired business. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of First California. First California cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, regulations and laws related to the acquired business, revenues are lower than expected, credit quality deterioration which could cause an increase in the provision for credit losses, First California's ability to complete future acquisitions, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all, changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which First California does or anticipates doing business are less favorable than expected, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of First California to retain customers, demographic changes, demand for the products or services of First California as well as their ability to attract and retain qualified people, competition with other banks and financial institutions, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, First California's results could differ materially from those expressed in, or implied or projected by such forward-looking statements. First California assumes no obligation to update such forward-looking statements. For a more complete discussion of risks and uncertainties, investors and security holders are urged to read the section titled "Risk Factors" in First California's Annual Report on Form 10-K and any other reports filed by it with the Securities and Exchange Commission ("SEC"). The documents filed by First California with the SEC may be obtained at the SEC's website at www.sec.gov. These documents may also be obtained free of charge from First California by directing a request to: First California Financial Group, Inc., 3027 Townsgate Road, Suite 300, Westlake Village, CA 91361. Attention: Investor Relations. Telephone (805) 322-9655.

Contact Information

  • For further Information:

    At the Company:
    Ron Santarosa
    805-322-9333

    At PondelWilkinson:
    Robert Jaffe
    310-279-5969

    Corporate Headquarters Address:
    3027 Townsgate Road, Suite 300
    Westlake Village, CA 91361