Commercial Bank of California and National Bank of California has secured the regulatory approval for their merger.
The transaction has received the go-ahead from the Federal Deposit Insurance, the Federal Reserve Bank of San Francisco and the California Department of Business Oversight.
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Under the terms of the transaction, National Bank of California will be merged into Commercial Bank of California.
The merged bank will manage total assets of over $750m and total deposits of over $650m, and will continue to serve customers in Los Angeles County and Orange County.
All existing branches of the banks will be retained following the merger. The bank has also secured the green light to set up a new full-service branch in Santa Monica, which is scheduled to open in the second quarter of 2016.
The merged entity will continue to operate with the name Commercial Bank of California as a wholly-owned subsidiary of NCAL Bancorp.
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By GlobalDataThe deal is expected to close on or about 30 April 2016.
NCAL Bancorp and National Bank of California chairman of the board and Commercial Bank of California CEO Ash Patel said: "This partnership is a natural fit to building our growth strategy and franchise value by combining these two business banking institutions serving Los Angeles and Orange Counties. The merger of Commercial Bank of California and National Bank of California provides an opportunity to create the foundation for a privately held, billion dollar bank offering customers of Los Angeles and Orange Counties access to greater financial resources."
