California United Bank has entered into an agreement with California Oaks State Bank to acquire the latter for approximately $17.3m.

At 30 June 2010, California Oaks State Bank had assets of $136.7m, total deposits of $114m and three offices.

Upon completion of the transaction, California United Bank is expected to have over $650m in assets and $530m in deposits.

California United Bank said that it intends to continue to operate both of California Oaks State Bank’s branches as full-service branches.

California United Bank president and CEO David Rainer said that California Oaks State Bank has a strong franchise as well as talented branch staff and the strategic opportunities of this transaction are extremely attractive.

“The acquisition of California Oaks State Bank, which includes full-service offices in the Conejo and Simi Valleys, is a logical step in our strategy to achieve critical mass by expanding in local and adjacent markets with attractive demographics and to continue to build franchise value for our shareholders,” Rainer said.