Merger of El Dorado Savings with PacWest Bancorp terminated

SOUTH LAKE TAHOE, Calif. - In September, PacWest Bancorp announced the signing of a definitive agreement and plan of merger with El Dorado Savings, a transaction that was valued at approximately $466.7 million at the time.

Now the deal is off.

At a meeting of El Dorado shareholders on January 9, 2019, the transaction did not receive the two-thirds affirmative vote of outstanding shares as required under applicable federal law.

“We offer our best wishes to El Dorado and its management,” said Matt Wagner, President and CEO of PacWest. “We will continue to execute our business plan and work to produce top-tier operating results, and we intend to continue our M&A strategy, which prioritizes being a financially disciplined acquirer – a strategy we’ve refined through 29 successful acquisitions over the past 18 years.”

"The El Dorado board and I are disappointed that the unexpected recent decline in bank stocks – which significantly reduced the nominal value of the proposed stock and cash transaction – has affected shareholder support at this time,” said El Dorado Chairman Tom Meuser. “El Dorado’s board and management team will work together to map an independent path forward. In the meantime, our customers and employees should expect the same high-quality service and prudent management that have defined El Dorado for the past 60 years.”

Under the terms of the Agreement, neither PacWest nor El Dorado will be responsible for payments to the other party as a result of the termination. When the Agreement was announced on September 12, 2018, the acquisition was expected to be 1% accretive to PacWest’s 2019 and 2020 earnings per share, and the stock and cash transaction was valued at approximately $466.7 million.

There are several area branches of El Dorado Savings including three in South Lake Tahoe and Stateline.