Western Bancorp in Newport Beach, Calif., said Friday that it has a deal to buy Bank of Los Angeles for about $96 million in stock.
Western, the $2.1 billion-asset parent of Santa Monica Bank and Southern California Bank, would exchange 0.4224 shares of stock for each share of Bank of Los Angeles stock. By acquiring $275 million-asset Bank of Los Angeles, Western would extend its reach into Glendale, Culver City, and West Hollywood, and expand in Beverly Hills and Encino.
John J. Feldman, president and chief executive officer at 15-year-old Bank of Los Angeles, said he would leave the company when the deal is completed at the end of the third quarter.
"In a merger like this there is only room for one president," he said. "It goes with the territory."
Southern California Bank with $900 million of assets has 16 branches in Los Angeles, Orange, and San Diego counties.
Santa Monica Bank has $1.2 billion of assets and has 13 branches in Los Angeles areas.