FRESNO, Calif. - Vallicorp Holdings Inc. received approval from the Federal Reserve for the acquisition of El Capitan Bancshares and its subsidiary, El Capitan National Bank.

Vallicorp and El Capitan signed an agreement in May calling for Vallicorp to acquire El Capitan in a stock exchange under which El Capitan holders will receive about 2.3 shares of Vallicorp common for each share of El Capitan common. Vallicorp expects the transaction to close in the first quarter of 1996, subject to El Capitan shareholder approval.

El Capitan, with eight branches, had assets of about $132 million at June 30. The two institutions, on a pro forma basis, had combined total assets of about $1.25 billion and 50 branches, all in central California.

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