NCAL Bancorp (NCAL) in Los Angeles is selling one of its five branches to a neighboring bank.
The $356 million-asset holding company of National Bank of California said Thursday it would sell a branch and $12.2 billion of deposits to Manufacturers Bank of Los Angeles for an undisclosed amount. The deal, which is expected to close by early next year, would give the $2.1 billion-asset Manufacturers 13 branches.
"The transaction will allow us to redirect our full focus to our core geography in the Los Angeles and Orange County areas," Henry Homsher, National Bank's president, said in a press release. "We are confident we have found an institution that mirrors our customer service philosophy and are excited to introduce our depositors to Manufacturers Bank."
"We are excited to serve the greater Glendale area, as we believe it is a natural complement to our other full service regional branches throughout California," Naresh Sheth, Manufacturers' chief executive, said in the release.
National Bank agreed in June to sell to Grandpoint Capital for roughly $3.4 million, though the price could change depending on the seller's capital levels and credit quality at closing and two years thereafter. The sale, which was expected to close by the end of the year, still requires regulatory approval.
D.A. Davidson and the law firm of King, Holmes, Paterno & Berliner advised NCAL on the sale of the branch. The law firm of Horgan, Rosen, Beckham & Coren advised Manufacturers.