California United Bank has agreed to acquire Anaheim-based Premier Commercial Bancorp for $38 million in a deal expected to close in the second quarter.
Premier Commercial’s subsidiary Premier Commercial Bank is the seventh-largest bank based in Orange County with assets of $450 million as of Sept. 30.
Encino-based California United had assets of about $792 million. The acquisition is expected to boost its assets to about $1.2 billion.
Premier Commercial Bank operates out of branches in Anaheim and Irvine. The sites will be renamed as California United for a total of eight branches throughout Southern California.
The acquisition follows California United Bank’s $17 million buy of Thousand Oaks-based California Oaks State Bank in December 2010.
“We have always believed that Orange County presents significant opportunities for our middle-market focused business lending,” California United Chief Executive David Rainer said in a statement.
Premier Commercial Chief Executive Kenneth Cosgrove will be on the board of directors of the combined company after the deal closes.
Premier Commercial Bancorp shareholders will receive about 3.7 million shares of California United, which makes for a one-for-one exchange of shares.