LOS ANGELES — National Mercantile Bancorp, which has two branches in Los Angeles and a suburb to the north, has a definitive agreement to buy a similar small bank with two branches in southern suburbs.

The $204.5 million-asset parent of Mercantile National Bank would pay $29.1 million for South Bay Bank of Torrance, which has $192.6 million.

Mercantile’s suburban branch is in Encino. South Bay’s branches are in Torrance and El Segundo.

South Bay’s shareholders would receive about $10.325 in cash per share, or about 1.93 times book value. South Bay would retain become a subsidiary and would retain its name.

The sale is expected to close in the fourth quarter.

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