The Boards of Directors of San Fernando Valley headquartered California United Bank and Conejo Valley based California Oaks State Bank announced yesterday that the companies entered into a merger agreement providing for California United Bank to acquire California Oaks State Bank.
The acquisition is valued at approximately $17.3 million, with approximately half that amount being paid in cash and the balance in the form of shares of California United Bank common stock. As of June 30, 2010, California United Bank had total assets amounting in $532.0 million, total deposits of $420.2 million and seven offices. While California Oaks State Bank had assets of $136.7 million, total deposits of $114.0 million and three offices. Upon completion of the transaction- by close of the fourth quarter 2010, California United Bank will have over $650.0 million in assets and $530.0 million in deposits.
California United Bank intends to continue to operate both of California Oaks State Bank’s branches as full-service branches. At close of the merger, California United Bank will feature six full-service branches; located in Encino, Santa Clarita Valley, Los Angeles, South Bay, Conejo Valley and Simi Valley and three commercial lending offices located in Glendale/San Gabriel Valley, Orange County and Walnut Creek.
The merger was agreed upon unanimously by both banks Board of Directors. However, the acquisition is still subject to approval by bank regulatory authorities and the shareholders of each of California United Bank and California Oaks State Bank as well as other customary conditions.
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