Thousand Oaks-based California Oaks State Bank and Encinco-based California United Bank said Nov. 24 that they’ve received the green light from federal banking regulators to complete their proposed acquisition deal.
The deal still needs the approval of the shareholders of the banks. Both banks will hold special shareholder meetings on Dec. 9 to vote on the proposal. If shareholders approve the deal, it’s scheduled to close on Dec. 31, the banks said.
The two institutions, which will operate under the California United Bank name after the deal closes, announced their merger in August. California United will pay about $17.3 million for Cal Oaks, half in cash and half in shares of common stock.
California United has said it plans to keep both Cal Oaks branches open. That gives the bank six full-service branches in Southern California and three commercial lending offices, two in Southern California and one in the San Francisco Bay Area.
“We’re both business banks focused on basically the same clientèle,” Cal Oaks President and CEO John Nerland told the Business Times in a September interview. “Their focus has been on the San Fernando Valley and surrounding L.A., and we’re more in the Conejo Valley.”
California United had total assets of $532 million at June 30 and total deposits of $420.2 million, and California Oaks State Bank had assets of $136.7 million and total deposits of $114.0 million. When the deal closes, California United will have over $650 million in assets and $530 million in deposits, the banks said in an August press release.
Cal Oaks shareholders will receive approximately $11.35 per share if the transaction closes by Dec. 31 or $11.30 per share if the transaction closes next year. Cal Oaks stock closed at $10.60 on Nov. 23 and was up about 2.8 percent to $10.90 in morning trading on Nov. 24.