First ULB (FUBP) in Oakland, Calif., has agreed to buy Union Financial in Albuquerque, N.M.
First ULB will pay about $5.9 million in stock for the $62 million-asset Union Financial, it announced Tuesday. The companies expect to complete the deal in the third quarter.
The merger would mark the first step into New Mexico for the $269 million-asset First ULB. Union Financial has one branch in Albuquerque; First ULB has seven branches in California and one branch in Seattle.
"The combination will provide greater opportunities for both banks and will continue to advance our position in the West," Malcolm Hotchkiss, First ULB's president and chief executive, said in a press release. "This transaction is a natural aggregation of our companies as our client and shareholder bases are very similar."
In 2011, First ULB filed for a $29 million initial public offering, outlining plans to use the capital to fund acquisitions.