CU Bancorp completed its acquisition of 1st Enterprise Bank in a deal valued at $112 million, the company announced on Monday.
The Encino holding company of California United Bank first announced the purchase of the L.A. bank in June, and shareholders approved the deal Nov. 17. CU Bancorp will now move its headquarters to downtown Los Angeles.
Under the agreement, for each share of 1st Enterprise stock, investors received 1.345 shares of CU Bancorp. The deal value was based on the $19.60 closing price of CU Bancorp’s common stock on Nov. 28. CU Bancorp issued 5.2 million shares to 1st Enterprise shareholders.
CU Bancorp gains four branches in Valencia, Thousand Oaks, Irvine and Los Angeles. The combined asset base of the merged bank increases by about $800 million to a total of $2.3 billion.
“The transaction creates a regional community bank with a four-county presence in Southern California,” said CU Bancorp Chief Executive David Rainer in a statement. “The combined company has a strong banking franchise in one of the largest metropolitan markets in the country along with excellent credit quality and core deposits.”
Shares closed down 8 cents, or less than 1 percent, to $19.52 on the Nasdaq.
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