In Brief: Small Atlanta Bank in Transcontinental Deal

Atlanta's Summit National Bank is planning to expand-in California.

The 10-year-old bank, which specializes in international trade finance, has signed an agreement to acquire California Security Bank of San Jose in an all-cash deal. Summit chairman David Yu said the company was attracted to $40 million-asset bank because of its large Asian deposit base and its potential for financing overseas transactions. He added that San Jose has a growing ethnic population but has few ethnic banks.

"The demographics of the San Jose marketplace are excellent," Mr. Yu said. A sale price was not disclosed. Summit, with $185 million of assets, would pay about two times the book value of privately held California Security, Mr. Yu said.

The deal would mark Summit's first venture outside Georgia. Though California Security does not make loans on international transactions, Owen Erickson, the bank's president and chief executive officer, said the opportunity clearly exists in entrepreneurial Northern California. "We're right here in Silicon Valley. There's a lot of trade financing going on here," Mr. Erickson said.

Mr. Yu said California Security would become a branch of Summit National. The deal is expected to close in the second quarter.

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