Security Pacific National Bank said Wednesday that it will acquire California Pacific National Bank, a small Los Angeles institution primarily serving the city's Chinese business community.
Security Pacific will pay $11.5 million for California Pacific, which has two offices--one downtown and one in Chinatown--and total assets of $82 million. It reported net income of $406,000 last year.
Security Pacific officials said the purchase of California Pacific fits in with the larger bank's strategy of expanding its financial services around the Pacific Rim. Many of California Pacific's customers are engaged in international trade and will be able to take advantage of Security Pacific's worldwide offices and the Asian branches of its Bank of Canton Ltd. subsidiary, bank officials said.
California Pacific will keep its current management and identity and will be operated as a subsidiary, Security Pacific said.
Terms of the agreement call for Security Pacific to acquire all of California Pacific's stock with cash pending regulatory approvals and the signing of a definitive agreement.