California

In what would be the biggest credit union merger to date, Addison Avenue Federal Credit Union and First Tech Credit Union have announced an agreement to combine and create a credit union with almost $5 billion of assets.

Heritage Oaks Bancorp in Paso Robles, Calif., said it plans to raise $60 million through a private placement of preferred shares.

City National Corp. in Los Angeles announced Thursday that it has completed repaying the Treasury Department's $400 million investment made under the Troubled Asset Relief Program.

Valley Commerce Bancorp of Visalia, Calif., said it lost $2.1 million in the fourth quarter, compared with earnings of $417,000 a year earlier.

California United Bank in Encino on Monday announced a 63% decline in profits for 2009 compared with 2008.

PacWest Bancorp in San Diego has sold off a significant portion of its troubled loans at a steep discount in an attempt to refocus on growth.

Sonoma Valley Bancorp has been required to restate its third-quarter results after a recent regulatory exam.

Small banks face myriad and often frustrating obstacles to acquiring failed banks. But some smart strategies have separated the successful bidders from the rest, including raising excess capital well before a bid, targeting fewer and smaller banks, tracking enforcement actions of potential failures and bringing in well-seasoned management to see a deal through.

WASHINGTON — Four failures late Friday cost the government an additional $1 billion.Among the closings, which brought the year's total to 20, was that of $3.6 billion-asset La Jolla Bank in La Jolla, Calif. The Federal Deposit Insurance Corp. sold La Jolla's operations to OneWest Bank in Pasadena in the second recent deal for the buyers of the failed IndyMac Bank.

The Office of Thrift Supervision has issued a prompt corrective action against La Jolla Bank FSB of Rancho Santa Fe, Calif., ordering the thrift to merge with another institution or sell off nearly all of its assets and liabilities to become at least "adequately capitalized."

Tamalpais Bancorp said late Tuesday that it was in a negative capital position, with a total risk-based capital ratio of minus-0.11% at Dec. 31.

Despite shrinking assets by a fifth in 2009, Saehan Bancorp in Los Angeles reported that its bank unit was significantly undercapitalized at the end of the fourth quarter.

Bank of Commerce Holdings in Redding, Calif., is looking to join the ranks of companies raising capital for possible acquisitions.

Hanmi Financial Corp. announced Monday that it has hired the investment bank Cappello Capital Corp. to explore strategic alternatives to satisfy regulators.

Talk about a strange brew. Cathay General Bancorp in Los Angeles was hit by an enforcement action in December, tapped the equity markets this week and is now contemplating expansion.

WASHINGTON — For the second Friday in a row, the Federal Deposit Insurance Corp. relied on new-bank capital to find homes for the operations of failed institutions.

Shares of Nara Bancorp Inc. fell 5.5% early Tuesday, but rebounded to close down 1.24% to $8.73 after the Los Angeles company announced a fourth-quarter loss. It was, however, an 85% narrower loss than posted a year earlier.

The Federal Reserve said Thursday it has taken enforcement action against California's Tamalpais Bancorp in an effort to ensure that it maintains sufficient capital.

California regulators have approved three more mergers of failed state-chartered credit unions.

North Asia Investment Corp., a $50 million special-purpose acquisition company led by a group of South Korean investors, announced Tuesday that it has agreed to acquire Pacific City Financial Corp., a Los Angeles company that caters to Korean-Americans.