Security Pacific Corp., parent of Security Pacific...

Security Pacific Corp., parent of Security Pacific National Bank, and La Jolla Bancorp, parent of La Jolla Bank & Trust Co., on Wednesday announced the signing of a definitive agreement concerning the acquisition of La Jolla Bancorp by Security Pacific. The preliminary agreement was announced in October.

According to the agreement, Security Pacific will pay $15 in Security Pacific stock for each of 6,964,670 outstanding La Jolla Bancorp shares and 484,604 exercisable stock options. That brings the deal’s total value to $111.7 million, said Terry Perucca, a senior vice president for Security Pacific.

Using La Jolla Bancorp’s Sept. 30 book value of $5.10 a share, Security Pacific is paying 2.94 times the bank’s book value, one of the highest multiples ever paid for a San Diego County financial institution. The merger is still subject to regulatory and shareholder approval, but Perucca said his bank expects the merger to be complete by the second quarter of 1990.

With assets of $551 million and deposits of $469 million as of Sept. 30, the 12-branch La Jolla Bank & Trust is the second-largest bank headquartered in San Diego County. Security Pacific Corp. is the fourth-largest bank holding company in the United States, with more than $87 billion in assets. Its principal subsidiary, Security Pacific National Bank, with 557 bank offices, is California’s second-largest bank.