Under the agreement, Glendale-based Americas United Bank (OTC Pink: AUNB) will merge into Bank of Southern California (OTC Pink: BCAL).
The merger is expected to close later this year.
Bank of Southern California currently operates eight locations in San Diego County, the Coachella Valley and Orange County. Americas United Bank operates four branches in the greater Los Angeles area.
The merger is expected to help Bank of Southern California enter the Los Angeles market and expand in the Southern California region.
“The combined bank offers a highly attractive franchise for us in the very desirable Los Angeles market and furthers Bank of Southern California’s vision of expanding our market share in Southern California. We believe this transaction allows the bank to better serve the clients of both organizations with increased lending capabilities, technology enhancements, and an increased branch network,” said Nathan Rogge, president and chief executive officer of Bank of Southern California.
Once completed, the merged institution will have assets of approximately $750 million, according to a joint statement from the banks.
Under terms of the agreement, AUNB shareholders will receive $7 in cash and 0.4746 shares of BCAL common stock, or $14 per share, for each share of AUNB common stock they own as of the merger’s closing date.