Bank of Anaheim, one of Orange County's few profitable banks last year, has signed a tentative agreement to be merged into California State Bank in Covina for $8.1 million in cash, or about $15 a share.
The agreement is subject to approvals from Bank of Anaheim shareholders and banking regulators as well as the Covina bank's review of the institution's loans.
A more definitive agreement is expected in two months if the review and further negotiations are completed favorably to both sides. Regulatory approval then would be expected by September, said Gene Hobday, Bank of Anaheim's president.
The acquisition would give California State its first branch in Orange County. With $344 million in loans and other assets, it now has 11 branches in Los Angeles, San Bernardino and Riverside counties.
Bank of Anaheim, with $74 million in assets and earnings of $256,000 last year, would continue to operate as the 12th branch with all of its employees. Hobday said he has tentatively agreed to continue working in Anaheim as a regional executive for California State Bank.