First Trust California Municipal High income ETF (NASDAQ: FCAL)

First Trust California Municipal High income ETF (NASDAQ:FCAL), Quote.Headers.trade-ideas

First Trust California Municipal High income ETF

Under normal market conditions, the Fund seeks to achieve its investment objectives by investing at least 80 percent of its net assets (including investment borrowings) in municipal debt securities that pay interest that is exempt from regular federal income taxes and California income taxes (collectively, Municipal Securities). Municipal Securities will be issued by or on behalf of the State of California or territories or possessions of the U.S. (including, but not limited to, Puerto Rico, the U.S. Virgin Islands and Guam), and/or the political subdivisions, agencies, authorities and other instrumentalities of such State, territories or possessions. Under normal market conditions, the Fund will invest at least 80% of its net assets in Municipal Securities that are issued by or on behalf of the State of California. In general, Municipal Securities issued by or on behalf of the State of California will be exempt from the California individual income tax. Municipal Securities issued by or on behalf of territories or possessions of the U.S. and/or the political subdivisions, agencies, authorities and other instrumentalities of such territories or possessions (collectively, Territorial Obligations) will pay interest that is exempt from regular federal income taxes and the California individual income tax. 

News

Guidance

Asset Sales

Management

FCAL

PACW

PacWest Bancorp to Acquire First California Financial Group for $8.00/Share

Letter from Gideon King, President of Loeb Capital Management to the Board of Directors of First California Financial Group  

First California Responds to PacWest Bancorp&#39;s Unsolicited Proposal  

Keefe Bruyette &amp; Woods suspends Market Perform rating on First California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>) and Removes $8.00 PT

Termination

Analyst Ratings

Keefe Bruyette &amp; Woods Suspends Market Perform Rating on First California Financial Group, Inc., Removes $8.00 PT

PacWest Bancorp (NASDAQ: <a class="ticker" href="/stock/pacw#NASDAQ">PACW</a>) and First California Financial Group (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>) today announced the signing of a definitive agreement and plan of merger whereby PacWest will acquire First California for $8.00 per First California common share, or approximately $231 million in aggregate consideration, payable in PacWest common stock.
	First California, headquartered in Westlake Village, California, is the parent of First California Bank and had approximately $2.0 billion in assets and 15 branches across Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo and Ventura Counties at September 30, 2012. In connection with the acquisition, First California Bank will be merged into Pacific Western Bank, the Los Angeles-based wholly-owned subsidiary of PacWest Bancorp.
	Directors of PacWest and of First California unanimously approved the transaction. Two independent directors from the board of directors of First California will join PacWest's board of
 <a href="http://www.benzinga.com/">See full press release</a>

First California Financial Trading Halted, News Pending

First California Financial Group (NASD: FCAL) reports third-quarter EPS of $0.11 versus the estimated $0.11 per share, in-line.

Earnings

First California Financial Group Reports Q3 EPS $0.11 vs $0.11 Est

Upgrades

Price Target

Sterne Agee Upgrades First California Financial Group from Neutral to Buy, Raises PT from $26 to $28

Loeb Arbitrage Management LP and Loeb Offshore Management LP, together doing business as Loeb Capital Management, and affiliated entities over which it has management discretion own approximately 2,100,000 shares of the common stock of First California Financial Group, Inc.. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>) 

We have grown increasingly frustrated with the actions of the board and management of FCAL. In our opinion, a credible cash offer has been made and shareholders have been treated to “double-talk” on many levels with respect to this springboard (a credible offer) from which to run an auction process to sell the Company to the highest bidder. At no point has FCAL simply stated that it is engaged in a process to explore strategic alternatives to maximize shareholder value. Rather, we believe shareholders have been subjected to vague press releases that give shareholders no assurance that the board takes its fiduciary duties seriously. One example of the poor quality of the Company's communication with shareholders is the following from a press release dated May 9, 2012: “The First California Board did not believe that it was in the best interest of stockholders to grant exclusivity to PacWest [Bancorp] in the absence of satisfactory clarification of the terms and value of its proposal and taking into account the other strategic alternatives that First California may pursue, including discussion with third parties.” 

view this as muddy language that avoids declaratively stating that the appropriate actions will be taken. In our view, the time for this management team to “have its cake and eat it too” is over.

Hedge Funds

General

Loeb Partners Reports a 5.75% Stake in First California, Filing Status Allows for Talks

First California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company of First California Bank, today announced, in response to PacWest Bancorp's unsolicited and highly conditional offer to acquire First California Financial Group for shares of PacWest common stock, First California stated that its Board of Directors promptly reviewed the proposal and sought further clarifying information from PacWest concerning the terms and value of the proposal and related matters. 

However, PacWest failed to provide satisfactory answers to those questions and refused to enter into a nondisclosure agreement that did not contain an exclusivity provision. The First California Board did not believe that it was in the best interests of stockholders to grant exclusivity to PacWest in the absence of satisfactory clarification of the terms and value of its proposal and taking into account the other strategic alternatives that First California may pursue, including discussions with third parties.

First California Responds to PacWest Bancorp's Unsolicited Proposal  

According to a research report published earlier today, Sterne Agee has downgraded First California Financial Group (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>) to Neutral.

In the report, Sterne Agee said, “We are lowering shares to Neutral, as we believe the current valuation mostly reflects FCAL's prospects for higher forward profitability and growth. While we do not expect a near-term sale, activist pressure on management to explore "all strategic options" will likely persist.”

First California Financial Group closed yesterday at $5.66.

Analyst Color

Downgrades

UPDATE: Sterne Agee Downgrades First California Financial Group 

Sterne Agee Downgrades First California Financial Group from Buy to Neutral

In a research report published earlier today by Sterne Agee, First California Financial Group (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>) has announced a small acquisition and branch realignment initiative, prompting Sterne Agee to increase its estimates. 

“We are raising our FY12E and FY13E to $0.41 (+$0.03) and $0.55 (+$0.11), respectively. There is no change to our $5.50 PT (10x FY13E). We view the recently announced branch consolidation initiative, which is expected to reduce non-interest expense by $1.4 million in FY12 and $2.7 million annually thereafter, as positive steps to improving the structural efficiency of the franchise. Also, loan growth should remain solid in 1H12 relative to 4Q11, noting a $100 million pipeline of loans. We are modeling core profitability gradually growing towards a 0.75% ROA over the next two years,” Sterne Agee said in the report. 

Sterne Agee maintains its Buy rating on First California, which closed yesterday at $4.67.

Reiteration

Sterne Agee Increases First California's Estimates

First California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company of First California Bank, today announced plans to realign branch offices within its banking regions, which includes the closing and consolidation of four branches located in Brea, Temecula, Thousand Oaks and Woodland Hills. 

The closing of the branches, which is scheduled for mid-year 2012, will result in pre-tax cost savings of approximately $1.4 million in 2012 and $2.7 million annually, thereafter. This initiative is expected to improve EPS by $0.03 for 2012 and $0.06 for 2013. One-time charges related to the branch consolidation are not expected to be material. 

The planned closings and consolidations are a result of an evaluation, which measured near-term growth potential in the current economic environment, as well as the Bank's ability to continue to service clients' needs at nearby First California Bank locations.

First California Announces Branch Realignment Initiative 

First California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company of First California Bank, and Premier Service Bank (OTC: PSBK) today announced the signing of a definitive agreement, in which Premier Service Bank will merge into First California Bank. The transaction is expected to close during the third quarter of 2012, subject to regulatory and shareholder approvals and other customary closing conditions. 

Under the terms of the merger agreement, Premier Service Bank's shareholders will receive, subject to certain adjustments, consideration of $2.0 million, or approximately $1.59 per share, in the form of FCAL common stock. Currently, this would equal 477,269 common shares and result in an exchange ratio of 0.3784 FCAL shares for each share of PSBK common stock outstanding.

First California Financial Group and Premier Service Bank Sign Definitive Merger Agreement 

DA Davidson maintains its Neutral rating on First California Financial (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>) as recent investor groups have called on the board to consider strategic alternatives, including a potential company sale. Deal potential has DA Davidson increase the price target on the company to $5.

DA Davidson notes, "Given FCAL's below peer profitability levels and, in our opinion, a lack of levers to improve the earnings power of the institution, we think upside to the stock as an independent company is limited and we have been proponents of FCAL considering other alternatives. Given its 5.1% projected ROE for 2012, the stock, in our opinion, would have likely continued to trade below TBV in the absence of recent M&amp;A speculation driven by the investor activity noted above."

FCAL closed at $4.44 a share on Monday.

Pre-Market Outlook

UPDATE: DA Davidson Raises Target to $5 on First California Financial

First California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company of First California Bank, acknowledges Amendment No. 14 to Schedule 13D that the Pohlad Group filed on January 12, 2012. The company said that the views of its stockholders are very important and it will carefully consider their input. First California's board of directors will evaluate the Pohlad Group's Amendment No. 14 to Schedule 13D in due course. The company does not intend to comment further on this matter except as required by applicable law and regulations.

Legal

First California Responds to Amended 13D Filing of Pohlad Group  

First
California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company
of First California Bank, acknowledges Amendment No. 14 to Schedule
13D that the Pohlad Group filed on January 12, 2012. The company said
that the views of its stockholders are very important and it will
carefully consider their input. First California's board of directors
will evaluate the Pohlad Group's Amendment No. 14 to Schedule 13D in
due course. The company does not intend to comment further on this
matter except as required by applicable law and regulations.

Events

First California Responds to Amended 13D Filing of Pohlad Group

Financing

First California Financial Files $50M Mixed Securities Shelf

First
California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company
of First California Bank, today announced that it has completed the
repurchase of a warrant held by the U.S. Treasury Department. The
10-year warrant was issued on December 19, 2008 as part of the
Company's participation in the U.S. Treasury's Capital Purchase
Program (<a class="ticker" href="/stock/cpp#">CPP</a>), and entitled the Treasury to purchase 599,042 shares
of First California Financial Group Inc. stock at an exercise price
of $6.26 per share. The Company paid a total of $599,042 to the
Treasury to repurchase the warrant.

Treasuries

First California Announces Repurchase of Outstanding TARP Warrant From Treasury

First California Financial Group, Inc. (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), the holding company of First California Bank, today announced that it has completed the repurchase of a warrant held by the U.S. Treasury Department. The 10-year warrant was issued on December 19, 2008 as part of the Company's participation in the U.S. Treasury's Capital Purchase Program, and entitled the Treasury to purchase 599,042 shares of First California Financial Group Inc. stock at an exercise price of $6.26 per share. The Company paid a total of $599,042 to the Treasury to repurchase the warrant. 

On July 14, 2011, First California repurchased 25 million of outstanding preferred shares issued under CPP, and with the repurchase of the warrant, redeemed all of the securities in connection with that program.

Buybacks

First California Announces Repurchase of Outstanding TARP Warrant From Treasury  

According to KBW, First California Financial Group (NASDAQ: <a class="ticker" href="/stock/fcal#NASDAQ">FCAL</a>), EPS estimates have been increased for FY11 and FY12.

KBW revised earlier EPS estimates for FCAL, going from $0.05 to $0.07 in FY11 and from $0.35 to $0.40 in FY12. PT is maintained at $4.50 and rating is reiterated at Market Perform. 

FCAL closed yesterday at $3.79.

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Comments

First Trust California Municipal High income ETF

Overview

First Trust California Municipal High income ETF (NASDAQ:FCAL), Quote.Headers.trade-ideas