ST. LOUIS - First Banks America Inc. of St. Louis, which operates banks in California and Texas, has agreed to buy Millennium Bank of San Francisco for $20.7 million in cash.

Millennium, founded in 1986, has $104 million of assets. The buyer, which has $1.1 billion of assets, is majority-owned by First Banks Inc., also of St. Louis, which has $5.2 billion of assets.

First Banks America agreed to pay $8.10 per Millennium share. The deal, which was announced Thursday, is expected to be completed in the fourth quarter or early next year.

It was the 16th California bank deal since 1994 for First Banks America, and its second for a San Francisco bank. In June the company said it would buy $177 million-asset Commercial Bank of San Francisco for $29.5 million. Millennium operates two branches in San Francisco and one in Oakland. First Banks America already has 17 branches in California, and six in Texas.

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