Two L.A. Banks Merge

CU Bancorp, the parent of California United Bank, and 1st Enterprise Bank today announced they have concluded an agreement under which 1st Enterprise will be merged into California United Bank in a transaction valued at approximately $103.4 million.

"The transaction combines two of the leading commercial banking franchises in Southern California with more than $2.2 billion in combined assets," a statement said. The two banks operate offices in Los Angeles, Orange, Ventura and San Bernardino counties.

Shareholders of 1st Enterprise will receive a fixed exchange ratio at closing of 1.3450 shares of CUB common stock for each share of 1st Enterprise common stock. Based on the CUB stock price as of Monday, total consideration for each 1st Enterprise share would be $24.47.

CUB, headquartered in Encino and a branch office in West Los Angeles, is the parent of California United Bank, which had approximately $1.4 billion in assets at March 31. It operates eight branches in Los Angeles, Orange, and Ventura counties. 1st Enterprise, headquartered in downtown Los Angeles with a branch office in Woodland Hills, had approximately $775.9 million in assets on March 31 and three branches -- in downtown Los Angeles, Orange County and the Inland Empire.

The combined bank will operate as California United Bank.

"We are excited about combining these two unparalleled commercial banking franchises in the Southern California market," said CUB Chairman, President and CEO David I. Rainer. "Both companies have developed strong commercial banking platforms and production capabilities, low-cost deposit bases and robust credit cultures."

He said the combined bank "will continue to focus on serving the needs of small- and middle-market businesses, which are the core of the Southern California economy."

Once the transaction is complete, the combined CUB Board of Directors will consist of 12 directors, eight representatives from CUB and four from 1st Enterprise. David Rainer will continue as Board Chairman. K. Brian Horton, current president of 1st Enterprise, will become president of CUB and California United Bank.

"We believe this combination of successful Southern California commercial banks will be of significant value to our shareholders, clients and employees," said 1st Enterprise Chairman David Holman. "The combination of these strong banks offers expanded lending capabilities and product offerings to our respective clients and importantly to the Southern California business market."

--City News Service