Cal Oaks shareholders will receive $11.35 per share if the transaction closes by Dec. 31 and $11.30 per share if it closes after. Cal Oaks shares closed at $11 on Dec. 9.
Karen Schoenbaum, California United’s vice president and chief financial officer, told the Business Times in a September interview that the deal means Cal Oaks shareholders will “have a significant ownership” in the new institution.
The exact stake Cal Oaks shareholders will receive depends on the average closing price of California United’s stock over the 20 business day period ending 10 days before the deal closes, the banks said Dec. 10.
California United has said it plans to keep both Cal Oaks branches open. That gives the new bank, which will continue to operate under the California United name, 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. Cal Oaks had assets of $136.7 million and total deposits of $114 million. When the deal closes, California United will have more than $650 million in assets and $530 million in deposits.