Rancho Santa Fe-based bank still on buying spree

First Community Bancorp, a Rancho Santa Fe-based bank with a history of gobbling up smaller institutions, has agreed to buy Foothill Independent Bancorp for $238 million.

Based in Glendora, Foothill will become the fourth small Southern California bank ushered under First Community Bancorp's umbrella this year.

Others include First American Bank of Rosemead, Pacific Liberty of Huntington Beach and Cedars Bank of Los Angeles. In all, First Community Bancorp has spent or will spend $462 million in stock and cash acquiring the banks this year.

Matthew Wagner, chief executive of First Community, said in statement that the acquisition of Foothill boosts First Community's footprint in the fast-growing Inland Empire.

Foothill has $774 million in assets and 12 branches, including outlets in the Inland Empire cities of Temecula, Ontario, Rancho Cucamonga, Corona, Upland and Chino.

Under terms of the deal, Foothill shareholders will receive about one-half share of First Community stock, worth $26.14, for each Foothill share, First Community said. Owners of Foothill stock options will receive cash for their unexercised options.

Once the transaction is completed, Foothill Independent Bank will be merged into Pacific Western National Bank, the Los Angeles-based wholly owned subsidiary of First Community. The bank also operates under the First National Bank name in San Diego County.

Prior to this deal, First Community Bancorp had a total of 41 branches – 28 in the metropolitan Los Angeles area and 13 in San Diego County. The bank had $3.1 billion in assets as of Sept. 30.

First Community's shares ended yesterday up 57 cents at $53.89.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.