Bank Mergers Reach 3 Counties

0

In what is being billed as a “merger of equals,” First California Financial Group Inc. announced it has completed a deal that will combine National Mercantile Bancorp and FCB Bancorp.


The two banks will operate under the First California name, with the NASDAQ ticker symbol changing to FCAL, even though National Mercantile technically bought FCB. The deal follows First California’s $36 million purchase of Orange County-based South Coast Commercial Bank.


Principal operating subsidiaries of the new First California Financial group are First California Bank, Mercantile National Bank and South Bay Bank. Mercantile National Bank and South Bay will keep their names until July while executives of the combined bank sell those charters to other institutions looking to enter the Southern California market.


C.G. Kum, chief executive of the Century City-based holding group, says the move puts his business well on its way to becoming a major financial institution in Southern California.


The asset size, he said, will increase to more than $1 billion and the branch system will expand to 12 offices, serving Los Angeles, Orange and Ventura counties. Kum added that the increased size and growth of assets will make for better flexibility in lending and greater diversity of financial products and services.


The deal comes on the heels of National Mercantile Bancorp’s second consecutive year of positive earnings and strong asset growth, which likely favorably influenced First California shareholders in agreeing to the merger.


National Mercantile’s 2006 net income grew 27 percent to $5.6 million, or 94 cents per share, compared to $4.5 million (75 cents) in 2005. Fourth quarter net income was $1.7 million (28 cents), compared to $1.2 million (21 cents) a year ago.

No posts to display