In a union of two Los Angeles-based regional banks, PacWest Bancorp is buying CU Bancorp, corporate parent of California United Bank.
California United, which has a regional office on Magic Mountain Parkway in Valencia, will be merged into Pacific Western Bank.
The deal is valued at about $705 million, according to PacWest statement released last Thursday.
“We believe merging with PacWest, one of the top-performing banks in the United States with demonstrated integration experience, provides the best path toward long-term value creation for our shareholders,” said David Rainer, Chairman and CEO of CU Bancorp, in the statement.
California United is a California state-chartered bank with about $3 billion dollars in assets and nine branches located in Los Angeles, Orange, Ventura and San Bernardino counties.The combined company would have approximately $25.0 billion in assets and 87 branches, with some branches expected to be closed.
The transaction has been approved by both companies’ boards and is expected to close by year end.
PacWest Bancorp CEO Matt Wagner expressed admiration for franchise California United has built and confidence that the combined company “will create value for both PacWest and CU Bancorp shareholders.”
Pacific Western has 74 full-service branches in California and one branch in North Carolina. California United was founded in 2005.
