El Camino Bancorp Acquisition OKd by Federal Regulators

Federal regulators have approved the $16.3-million cash acquisition of El Camino Bancorp in Anaheim by Citizens Holdings in Costa Mesa, executives at both companies said Wednesday.

The approval set the stage for a March 15 closing, said Paige V. Simpson of Citizens Holdings, parent of Citizens Bank of Costa Mesa.

State regulators approved the merger in January, said Stanley Pawlowski, chairman of El Camino Bancorp, parent of El Camino Bank.

Because the acquisition is occurring after the Oct. 15 target date, Citizens Holdings must pay an additional amount. Pawlowski estimated that the per diem costs will propel the sale price to almost $17 million.

The merger will create one of the largest independent banking systems in Orange County, with assets of more than $220 million, according to Dec. 31 figures.

Citizens Holdings will operate 15-year-old Citizens Bank and 18-year-old El Camino Bank as separate community banks with the same directors, officers and staff, Simpson said.

The acquisition is part of an aggressive game plan by Citizens Holdings, created in April, 1986, by Australian industrialist Richard Pratt, to buy two or three other banks from Long Beach to San Diego.

The deal gives El Camino stockholders about $8.05 a share. The purchase price is about 1.75 times the book value, or shareholder equity.