SC Bancorp Bids for Catalina Bank

Under a proposed cash merger, the National Bank of Catalina--serving Avalon and Signal Hill--would be acquired by Southern California Bank and its parent corporation, SC Bancorp, banking officials have announced.

The acquisition is subject to the approval of National Bank of Catalina shareholders and banking regulatory agencies, said Hal Beisswenger, president of Southern California Bank. In addition, Southern California Bank must complete an examination of the National Bank of Catalina, which should be finished by December.

Both banks must also agree to the terms of a detailed agreement covering the transaction, Beisswenger said.

If approved, the acquisition should be completed by next spring, officials from both banks said.

Under the terms of the cash transaction, National Bank of Catalina shareholders would receive cash equal to 1.5 times their stock’s book value at the end of the month preceding the effective date of the merger, said David Perry, president of the National Bank of Catalina.

Perry said the Catalina bank was established in Avalon in 1982 and a second corporate office was opened in Signal Hill in 1985. The bank has holdings of $82.9 million, including assets, deposits and shareholders’ equity. Most shareholders live on the mainland, he said.

The 14-branch Southern California Bank, with headquarters in Downey, has assets, deposits and shareholders’ equity totaling $674.4 million. Beisswenger said the 25-year-old bank would work to remain close to the communities in Avalon and Signal Hill.