La Jolla, Escondido Banks to Merge Into County’s 3rd Largest
La Jolla Bank and Trust and Hidden Valley National Bank of Esondido have agreed to merge and create San Diego County’s third-largest bank, with $366 million in combined assets.
La Jolla Bancorp, the parent company of La Jolla Bank and Trust, will acquire the Escondido bank through a stock swap. The banks declined to describe the value of the swap. The Hidden Valley National Bank will reopen as a La Jolla Bank and Trust office after the deal is completed. The agreement is subject to federal and state regulatory approvals and must be voted by Hidden Valley National Bank shareholders at an as-yet-unscheduled meeting.
The merger will place La Jolla Bank and Trust behind only San Diego Trust & Savings and Southwest Bank among locally based banks ranked by asset size.
La Jolla Bank and Trust “will now have offices in all the metropolitan areas along the north coastal and inland region from downtown San Diego to Oceanside,” according to La Jolla Bancorp Chairman Leon Parma.
Hidden Valley National Bank President Michael Peters, who will become a senior vice president of La Jolla Bank and Trust, will remain at the Hidden Valley office.
‘A’ Rating Given
Hidden Valley National Bank, established in 1983, reported $51 million in assets and $375,000 in profits for fiscal 1986. The Findley Reports, a Brea-based bank rating service, gave the bank an A rating in 1985-86.
La Jolla Bank and Trust, founded in 1973, reported $315 million in assets Dec. 31 and $1.7 million in profits for fiscal 1986. It has received an A rating from Findley Reports for the last five years.
The two banks will have $355 million in combined deposits and $238 million in combined loans.
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