Encino’s California United Bank to acquire California Oaks State Bank

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California United Bank, a 5-year-old Encino community bank, plans to extend its Ventura County operations by acquiring California Oaks State Bank of Thousand Oaks, a smaller business lender that also has an office in Simi Valley.

An announcement Wednesday from the banks said shareholders of 12-year-old California Oaks would be paid about $17 million, or $11.35 a share, half in cash and half in stock, under the terms of the merger agreement. The deal is expected to close in the fourth quarter, pending approval by regulators.

The merger would result in a bank with about $650 million in loans and other assets and $530 million in deposits. After the deal closes, California United Bank would have full-service branches in Encino, Valencia, Los Angeles, Gardena, Thousand Oaks and Simi Valley, along with loan-production offices in Glendale, Irvine and Walnut Creek.

Shares of thinly traded California Oaks jumped by $4.10 to $10.10 in midday over-the-counter trading. California United, also traded over the counter, was down 5 cents at $11.

-- E. Scott Reckard