Don M. Griffith, chairman of Grandpoint Capital, which was formed in 2008… (Grandpoint Capital )
Grandpoint Capital Inc. is buying NCAL Bancorp, the parent company of National Bank of California, the two Los Angeles financial companies announced.
National Bank of California, which operates five branches in L.A. and Orange counties, had about $341 million in assets as of March 31. Under the agreement announced late Monday, it would operate as a wholly owned subsidiary of Grandpoint, with its management intact.
NCAL Bancorp is among about 30 California banks that have yet to repay investments from the U.S. Treasury made during the financial crisis. Grandpoint said it would repay the $10.5 million that the government paid for preferred stock, plus $605,000 in deferred dividends.
Grandpoint, with $1.5 billion in assets, was formed in 2008 to take over small business banks. It has acquired seven in California and Arizona and has three more purchases pending including NCAL.
The price to be paid to NCAL shareholders depends on several variables, the banks said in a news release. Had the deal closed May 31, Grandpoint would have paid $1.45 per share, about $3.4 million.
In a second phase of the deal, it could pay NCAL shareholders more than that amount in 2014 if the bank reduces expenses and recovers certain loans that have gone delinquent.
The sale is expected to close in the fourth quarter.
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