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California United Bank Completes Acquisition of California Oaks State Bank

^{Published on 2011-01-03 06:15:14 - Market Wire}
 

ENCINO, Calif.--([ BUSINESS WIRE ])--California United Bank (OTCBB:CUNB), headquartered in Encino, California, announced today that it completed its acquisition of California Oaks State Bank (OTCBB:COSB), headquartered in Thousand Oaks, California, effective December 31, 2010. California Oaks State Banka™s branch offices in Thousand Oaks and Simi Valley will now operate as full service offices of California United Bank.

"This merger is a good fit for the customers of both organizations"

Shareholders of California Oaks State Bank will receive consideration equal to $11.35 per share, with 50% of the aggregate consideration to be paid in cash and 50% in California United Bank Common Stock, at an exchange ratio of 0.9278of a share of California United Bank Common Stock for each share of California Oaks State Bank Common Stock. The total transaction to California Oaks shareholders is valued at approximately $17.16 million.

aThis merger is a good fit for the customers of both organizations,a remarked David I. Rainer, President and Chief Executive Officer of California United Bank. aThe merger will expand and strengthen California Uniteda™s franchise in Ventura County, and build upon the traditions of prudent banking and exceptional customer service which California United Bank has adopted as its business model. We are very pleased to welcome California Oaks State Banka™s customers and employees to California United Bank.a

Mr. Rainer added that with the merger, the customers of both California Oaks State Bank and California United Bank will benefit from convenient service through California United Banka™s network of six full service offices in Simi Valley, Thousand Oaks, Encino, Santa Clarita, Los Angeles and the South Bay.

aWe look forward to offering California Oaks State Bank customers the convenience, technology, products, and services of a larger, full-service business bank, with the personal touch and quality service theya™re accustomed to receiving from a community-oriented institution,a commented Rainer.

About California United Bank

California United Bank, which celebrated the fifth anniversary of its opening in May 2010, provides a full range of financial services, including credit and deposit products, cash management, and internet banking for business, entrepreneurs, professionals and high net worth individuals throughout Southern California, from offices in the San Fernando Valley, the Santa Clarita Valley, the Conejo Valley, the Simi Valley, Los Angeles, South Bay, Glendale/San Gabriel Valley and Orange County. To view California United Banka™s most recent financial information, please visit the Investor Relations section of the Banka™s Web site. Information on products and services may be obtained by calling (818) 257-7700 or visiting the Banka™s Web site at [ www.californiaunitedbank.com ].

Forward Looking Statements

Certain statements contained in this release that are not statements of historical fact constitute forward-looking statements for which California United Bank claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 (the aActa), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the FDIC, in press releases and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of our plans, objectives and expectations or those of our management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted," acontinue," "remain," "will," "should," "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the possible or assumed future financial condition, results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond our ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) difficult and adverse conditions in the global and domestic capital and credit markets and the state of California, (2) continued volatility and further deterioration of the capital and credit markets, (3) significant costs or changes in business practices required by new banking laws or regulations, (4) a more adverse than expected decline, a adouble dipa recession, or continued weakness in general business and economic conditions, which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense, (5) changes in market rates and prices which may adversely impact the value of financial products, (6) changes in the interest rate environment and market liquidity which may reduce interest margins and impact funding sources, (7) increased competition, (8) changes in the financial performance and/or condition of the Bank's borrowers, (9) increases in Federal Deposit Insurance Corporation premiums due to market developments and regulatory changes, (10) earthquake, fire, pandemic or other natural disasters, (11) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, and (12) our success at managing the risks involved in the foregoing.

Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made, or to reflect the occurrence of unanticipated events.

For a more complete discussion of these risks and uncertainties, see California United Banka™s Annual Report on Form 10-K for the year ended December 31, 2009, and particularly Part I, Item 1A, titled "Risk Factors.a