Looking to bulk up in affluent Orange County, California United Bank in Encino announced Friday that it is buying the $450 million-asset Premier Commercial Bancorp in Anaheim for $38.1 million in stock.
The deal would create a $1.2 billion-asset company with $1 billion of deposits, $772 million of loans and eight full-service branches in Southern California. In a news release, California United President and Chief Executive David Rainier said that his six-year-old company, based in the San Fernando Valley, had been eyeing Orange County for expansion because it has attractive demographics and is home to a number of middle-market companies.
"The merger...is a logical step in our strategy to achieve critical mass by expanding in local and adjacent markets with attractive demographics," Rainier said. He added that Premier's president and CEO, Kenneth Cosgrove, will join the merged company's board.
The transaction would continue a consolidation trend that is unique to California. Including this deal, at least 17 mergers and acquisitions have been announced in the Golden State this year, by far
California United said that it intends to create a new holding company, CU Bancorp, as part of the deal. Under terms of the agreement, Premier shareholders would receive roughly one share of CU Bancorp stock for each share they own. California United's shares were trading at $10.25 early Friday.
The sale is expected to close in the second quarter of 2012.
