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Friday, Mar 29, 2024

California United Plans Acquisition

Rainer Encino-based California United Bank sees its $38.1 million acquisition of Anaheim’s Premier Commercial Bancorp. and its subsidiary Premier Commercial Bank as a way to give customers a big bank’s reach with small bank values. The cultures of the two small business banks should mesh because of a common desire for good, old-fashioned customer service, said California United CEO David Rainer. “We’re much like an old-fashioned bank — no 1-800 numbers — and they are the same way,” Rainer said. The acquisition, which was announced Dec. 9 and is expected to close in the second quarter, would help California United to expand its reach in Orange County and add SBA loans to its offerings. It also would give clients a larger lending limit and increased services, Rainer said. The purchase, still subject to shareholder and regulatory approval, would bring California United’s assets to more than $1.2 billion and more than $1 billion in deposits. As of Sept. 30, California United has total assets of $791.7 million and total deposits of $671.9 million. The acquisition would make California United a regional player in a very competitive marketplace, which is no stranger to consolidation. Dennis Santiago, chief executive of Institutional Risk Analytics, said the banks are very compatible and California United’s acquisition is a good sign in a banking industry hit hard by the downturn. “I like seeing these combinations,” Santiago said. “It’s a very clear sign of continued recovery as they prepare to take on new business.” Merging company cultures is never an easy task. But Rainer said he isn’t too worried, noting that the bank learned a lot from its acquisition of California Oaks State Bank in 2010 and is devoting significant time to integrating the two banks. He declined to comment if redundancies would surface and lead to layoffs. Acquisition Details The deal would add Premier Commercial Bank’s Anaheim and Irvine branches to the Valley business bank’s portfolio. California United currently has branches in the San Fernando Valley, the Santa Clarita Valley, the Conejo Valley, Simi Valley, Los Angeles, and the South Bay. It also has loan production offices in Orange County and Glendale. The acquisition would rebrand Premier’s banks under the California United name, bringing the company’s total offices to eight branches and one commercial lending office in Glendale. The California United loan production office in Orange County would be combined with the Premier branch in Irvine. The other side of the Orange Curtain provides amble growth opportunity, because of its concentration of small- to medium-sized business, which are California’s core clients, Rainer said. “We are really excited and we plan to extend (SBA lending) across our entire footprint,” Rainer said, adding that partnering with an experienced SBA lender made more sense than starting from scratch. California United wasn’t losing clients because it didn’t offer SBA loans, but the acquisition “opens up opportunities to do additional business” as it adds a “different revenue stream,” he said. Premier Commercial Chairman and CEO Kenneth Cosgrove and board member Robert Matranga will join the California United board of directors. Cosgrove said the acquisition would allow Premier customers to gain services at higher volumes and at a faster pace. The transaction will put California United “on the larger end” of small banks, Rainer said. “We can do some things that small banks can’t do.”

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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