El Camino Bank, the profitable, 17-year-old Anaheim institution long courted by many suitors, will be acquired by Citizens Holdings in Costa Mesa, the two companies said Tuesday.
Under terms of a definitive agreement, Citizens will buy all the stock of El Camino Bancorp, the bank's holding company, for $16.2 million--about $8.25 a share--and will maintain El Camino's top management and keep its operations separate from Citizens' subsidiary, Citizens Bank of Costa Mesa.
El Camino will also lose its status as the oldest independent bank in Orange County.
The acquisition, which the two holding companies previously announced as a tentative agreement, will create a banking concern with $228.4 million in assets and $205.3 million in deposits--the third-largest Orange County-based banking operation.
The agreement is subject to approval by state and federal regulators and by El Camino shareholders. Executives at both banks expect that approval to be granted in December or January. After Oct. 15, El Camino shareholders will also share in a $4,500-a-day dividend until the deal is approved. Most of the 1.97 million shares are owned by El Camino directors, all of whom signed the agreement.