California United Bank will acquire California Oaks State Bank, which operates full-service offices in the Conejo and Simi valleys. The $17.3 million acquisition advances Encino-based California United Bank’s strategy of expanding in local and adjacent markets with attractive demographics and to continue to build franchise value for its shareholders, said President and CEO David Rainer. The transaction is expected to close in the fourth quarter. Earlier this year California United Bank expanded the bank’s presence in new markets including Glendale, Santa Monica, and Orange County. “California Oaks State Bank has a strong franchise as well as talented branch staff and the strategic opportunities of this transaction are extremely attractive,” Rainer said. “The combination is expected to create one of the largest banks headquartered in the San Fernando Valley and presents significant prospects for our communities and shareholders.” The agreement has been unanimously approved by the Boards of Directors of both banks and is subject to approval by bank regulatory authorities and the shareholders of both banks as well as other customary conditions. As of June 30 California United Bank had total assets of $532.0 million, total deposits of $420.2 million and seven offices. California Oaks State Bank had assets of $136.7 million, total deposits of $114.0 million and three offices. Upon completion of the transaction, California United Bank will have over $650.0 million in assets and $530.0 million in deposits. The transaction is expected to be immediately accretive to California United Bank’s earnings per share in 2011 and 2012. California Oaks State Bank shareholders will receive approximately $11.35 per share if the transaction closes by December 31, 2010 or $11.30 per share if the transaction closes after December 31, 2010, in the form of stock, cash or a combination of cash and stock, subject to the election and proration procedures set forth in the merger agreement. Andrea Alegria
