First California Bank’s parent last week completed an $88 million merger of equals with National Mercantile Bancorp, and the new holding company, First California Financial Group Inc., is one of the 20 largest Los Angeles-based bank companies, based on assets.
Shareholders of National Mercantile, which was based in Century City, got a 30 percent premium over their shares’ price when the merger was announced last June. Shareholders in National Mercantile hold 50.5 percent stake in the new holding company. Shareholders of First California, based in Camarillo, got 49.5 percent.
The combined business’ 12 bank branches and four loan production offices are spread among Ventura, Los Angeles and Orange counties.
The new bank company has assets of more than $1 billion and employs about 220 people, with 150 of them from First California.
“The local banking landscape has changed drastically over the past few years,” said C.G. Kum, the chief executive of the newly formed holding company and of the old First California. “This move allows us to combine our collective financial muscle while still remaining agile and close to our customers.”
Kum added that while larger banks, like Washington Mutual Inc. and Bank of America Corp., have been buying up local banks, First California will be more able to serve its core customers, businesses with between $75 million and $100 million in annual sales.
National Mercantile owned two banks: Mercantile National, based in Century City with an office in Encino; and South Bay Bank, with offices in Torrance and El Segundo.
The merger comes 18 months after First California Bank’s $36 million acquisition of Orange County’s South Coast Commercial Bank. First California was founded in 1979 as Camarillo Community Bank, but the name was changed in 2001.
All banks will adopt the First California Bank name by the end of June, Kum said.
Kum added that a benefit in forming the holding company is that the company now has three bank charters, which essentially are permits from regulators to be a bank. Kum said that since the new company needs only one charter, it can sell the others.
