City National Corp. said Friday that it agreed to acquire American Pacific State Bank in Sherman Oaks for $89 million of cash.

The $6.3 billion-asset company said it would pay $15.65 for each of American Pacific's 5.5 million outstanding shares. The offer is 20.6 times American Pacific's trailing 12-month earnings and 2.75 times its book value.

City National is the parent of City National Bank, the largest independent bank headquartered in Southern California. The deal, expected to close in the fourth quarter, would boost its assets to $6.7 billion and add eight branches in the thriving San Fernando Valley. American Pacific is one of the valley's largest originators of Small Business Administration loans.

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