California Banks Kill Merger, Citing a SplitOver Staffing; Southern

Two California community banks have called off a planned merger, citing differences over how they would run the combined company.

Goleta National Bank, a $71 million-asset institution, canceled its letter of intent to merge with $88 million-asset Los Robles Bancorp, Thousand Oaks, this week.

The two companies had planned to form a holding company called Community West Bancshares.

"We just couldn't see eye to eye," said Bob Hamilton, president and chief executive officer of Los Robles. "We thought it would be better to stay on our own because we're both doing quite well."

Mr. Hamilton said the two parties disagreed over staffing, among other sticking points.

Lew Stone, Goleta's president, said it would go ahead and form Community West Bancshares.

Goleta is now more likely to make an acquisition rather than try another merger of equals, he said, adding: "We're going to look for other institutions that would like to come under that umbrella."

He said he doesn't expect a reconciliation with Los Robles.

Mr. Stone would have led the combined company.

"I think I'm disappointed predominantly that both the concept and what we're doing would have been an extremely good opportunity for their shareholders," Mr. Stone said.

Meanwhile, Los Robles is also looking for acquisition targets and would consider being acquired if the deal were profitable for shareholders, Mr. Hamilton said.

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WEST PALM BEACH, Fla.-Republic Security Financial Corp. closed a deal this week to acquire a Florida community bank.

The company merged its main subsidiary, Republic Security Bank, with its new acquisition, the Family Bank, Hallandale, Fla., to create a $610 million-asset institution with 17 branches in Palm Beach and Broward counties.

Republic officials said the merger would create a stronger community bank that could battle the superregionals that dominate Florida.

"This offers a real alternative to the giant banking organizations which have absorbed so many independent banks," Rudy Schupp, Republic Security chairman, said in a written statement.

Carol Owen, chief executive officer of Family Bank, is joining Republic Security's board of directors.