California Financial to Acquire Bank

California Financial Bancorp said it plans to buy Downey Bancorp, parent of Downey National Bank, for about $14.4 million, or $22.84 a share.

The Newport Beach-based bank holding company selected Downey for acquisition because it is “a very well-run bank . . . in an attractive market area,” said David Hooston, California Financial’s chief operating officer.

The two banking companies have been discussing the acquisition for several months, Hooston said.

Downey’s board of directors approved the deal, which could be completed by October.

The acquisition must still be approved by regulatory agencies and Downey Bancorp shareholders.

California Financial is majority owner of Security First Bank of Fullerton and will be majority shareholder of National Business Bank, a new bank opening soon in Torrance.