Royal Business Bank in Los Angeles has agreed to acquire Los Angeles National Bank in Buena Park, Calif.
The companies, which focus on the Asian-American community, announced the cash deal this week but did not disclose a price. It is set to close in the second quarter.
The deal is the third for the $626 million-asset Royal since its formation in 2008. In 2011, it acquired Ventura County Business Bank in Oxnard, Calif., and First Asian Bank in Las Vegas.
Los Angeles National had assets of $192.1 million at the end of 2012 and has served the Asian-American community in Los Angeles and Orange counties since 1973, the companies said in a press release.
The deal would give Royal Business an entree into Orange County.
"The acquisition of Los Angeles National gives us the opportunity to further serve our existing clientele and reach a new customer base," said Louis Chang, chairman of Royal Business in a press release.
Though Los Angeles National was exceedingly well capitalized at the end of the third quarter, the bank had experienced a dramatic increase in troubled assets, according to Federal Deposit Insurance Corp. data. Noncurrent loans made up 9.14% of total loans at the end of the third quarter, compared with 2.86% a year earlier.
