Little Tokyo’s Pacific Commerce Bank and ProAmérica Bank in downtown Los Angeles announced Thursday that they have agreed to merge. Pacific Commerce will be the surviving bank.

The combined institution will have total assets of about $560 million and five offices from downtown Los Angeles to south San Diego County.

“The combination of the two banks will provide us with better economies of scale and enable us to offer our loyal clients a broader array of banking services,” said Pacific Commerce Chief Executive Frank Mercardante. “Shareholders of the respective banks will benefit from greater efficiencies and a larger shareholder base, which should result in higher trading volumes.”

Shareholders of ProAmérica, which has $211 million in assets, will get $10.50 for each common share in either cash or common stock from Pacific Commerce, which has $350 million in assets.

ProAmérica’s single branch office will retain its name but as a division of Pacific Commerce Bank.

“The combined organization will have significantly higher lending limits, more product offerings and a branch network that will stretch all the way to the Mexican border,” said ProAmérica Chairwoman Maria Salinas.

The deal must pass regulatory and shareholder approval, and is expected to close in the second quarter of next year.