First National Corp., parent company of San...

First National Corp., parent company of San Diego-based First National Bank, has terminated a previously announced letter of agreement to acquire Overland Bank for $5.4 million in stock and cash, First National Bank President Michael West said Thursday.

The two companies were unable to agree upon “mutually satisfactory” terms, according to West, who declined to give details on why the proposed acquisition was abandoned.

First National, which was formed in 1981, merged with National Bankshares of La Jolla and National Bank of Fairbanks Ranch in 1987. The bank will continue to seek merger and acquisition candidates, West said.

“The I-15 corridor is still very attractive to us,” West said. “But we don’t currently have any other acquisitions to talk about.”

With the acquisition of Overland Bank, First National Corp.’s total assets would have risen to about $500 million. As important, the acquisition would have given the San Diego-based company its first banking presence outside San Diego County. First National Bank, with seven offices in San Diego County, reported $380 million in assets on June 30.