First Community to Buy Verdugo Banking

First Community Bancorp is continuing its expansion across Southern California.

The Rancho Santa Fe, Calif.-based parent of Pacific Western National Bank has agreed to buy Verdugo Banking Co. in Glendale for about $34.9 million in cash.

Under the deal announced Thursday, First Community would acquire all Verdugo common stock outstanding for $17.75 a share -- 42% more than its last closing price of $12.50 in over-the-counter trading.

There are about 1.97 million shares outstanding, including options, said Matt Wagner, First Community’s president and chief executive.

Raymond C. Dumser, Verdugo’s president and chief executive, was unavailable for comment Friday.

Verdugo brings First Community “closer to our vision of developing the premier community banking franchise for Southern California,” Wagner said.

“The acquisition of Verdugo will extend Pacific Western’s footprint into a very attractive area of the Los Angeles region,” he said.

The acquisition of Verdugo, which has assets of $169 million and one branch location, is expected to close in the third quarter.

The bank would be integrated into Los Angeles-based Pacific Western National Bank.

Last year, First Community snapped up several banks in the region, including First National Bank of San Diego, Upland Bank and Marathon Bancorp.

First Community operates 32 branches, including 18 Pacific Western offices. Shares closed Thursday at $29.58, dropping 7 cents, on Nasdaq.