California State Bank Plans to Expand in O.C., Acquire Landmark

California State Bank, in a move to expand its Orange County operations, announced plans Monday to acquire La Habra-based Landmark Bancorp. for a combination of cash and stock worth nearly $36.8 million.

Landmark operates six banking offices with more than $220 million in deposits.

California State Bank has 14 banking offices, including facilities in Anaheim, Corona del Mar, Newport Beach and Orange. The Covina-based institution picked up three branches last year in two separate deals. The bank purchased Bank of Anaheim in October, and picked up branches in Newport Beach and Orange when it bought the deposits of CommerceBank, a Newport Beach bank that failed in August.

The proposed Landmark acquisition is expected to be completed in the first quarter of 1996, California State Bank said. Under terms of the proposed acquisition, California State Bank will pay $7.75 in cash and one share of the Covina bank for each share of Landmark. California State was trading at about $12 per share Monday on the Nasdaq market.

Once the transaction is completed, Lankmark’s president and chief executive, Craig Collette, will become president of California State Bank. Gene Bishop, currently president of the Covina institution, will become vice chairman and chief operating officer. Tom Bishop will remain chairman and chief executive.

The deal must be approved by shareholders of both institutions as well as various regulatory agencies, officials at both banks said.

Landmark Bank’s offices are in Anaheim, Brea, La Habra, Lake Forest, La Palma and Placentia. As of June 30, Landmark Bank had total assets of $240 million. California State Bank had assets of $473 million.