What happened Shares of First Choice Bancorp (NASDAQ: FCBP) traded nearly 27% higher as of 11:10 a.m. EDT today after the bank announced that it will be acquired. So what The small $2.5 billion asset bank announced that it will be acquired by Enterprise Financial Services (NASDAQ: EFSC), a $10.2 billion asset bank based in Missouri. Banks getting acquired tend to see a nice premium, which is exactly what happened here. Enterprise plans to purchase First Choice in an all-stock deal valued at $398 million, or the equivalent of $33.40 per First Choice share. Image source: Getty Images. That values First Choice at 189% of its tangible book value (equity minus intangible assets and goodwill), which is a nice premium. The deal also represents a whopping 37% premium over First Choice's closing stock price yesterday. Now what First Choice shareholders probably want to hold their stock at least a little longer, seeing as the stock is only up 27% and Enterprise paid a 37% premium over yesterday's close. While sellers typically get a nice premium, buyers in bank deals often get dinged up. The acquisition of First Choice and the high premium for the bank will dilute Enterprise's tangible equity by 2.65% upon the closing of the deal. Investors don't like that and sent Enterprise's stock, which First Choice is now tied to, down more than 6% as of 11:10 a.m. But investors may warm to the deal if the combined bank can prove its value over the long term, so First Choice shareholders should hold their stock right now and wait to realize the whole premium, or think about holding for the long term if they think the combined bank has potential. 10 stocks we like better than First Choice BancorpWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and First Choice Bancorp wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source