CU Bancorp is one step closer to completing its acquisition of 1st Enterprise Bank after announcing Thursday it has received all approvals from government regulators.
The parent company of California United in Encino said the Federal Deposit Insurance Corp. and the California Department of Business Oversight has approved the transaction with the downtown Los Angeles bank.
Both banks are publicly traded. Holders of 1st Enterprise stock will receive about 1.3 shares of CU Bancorp stock for each of their current shares, valuing the transaction at roughly $104 million.
California United Bank is the largest community bank in the greater San Fernando Valley, with $1.4 billion in assets. The acquisition will raise its assets to $2.2 billion and add four locations for a total of 12.
“These regulatory approvals are an important step in completing the combination of California United Bank and 1st Enterprise Bank and the creation of an unparalleled commercial bank serving the Southern California business community,” said California United Chief Executive David Rainer in a statement.
The bank said it now plans to mail joint proxy statement to the shareholders, who will meet separately to vote on the deal. Meeting dates are expected to be announced soon.
The deal, expected to close by the end of the year, is the latest in a string of bank mergers and acquisitions that have followed the end of the recession. Analysts and executives have said it is difficult for small lenders to be profitable while meeting stricter bank regulations enacted after the financial crisis.
Shares of CU Bancorp closed down 19 cents, or about 1 percent, to $18.66 on the Nasdaq.