Mid-State Bank to Buy City Commerce

Mid-State Bancshares, one of California’s 10 largest banks, agreed to buy City Commerce Bank Santa Barbara for about $37 million to expand into Southern California. Mid-State, based in Arroyo Grande in San Luis Obispo County, plans to pay City Commerce stockholders 0.78 share for each of their City Commerce shares. That values City Commerce at $20.84 a share, based on Monday’s closing price for Mid-State. After the acquisition, Mid-State will have $1.35 billion in assets, said James Stathos, the company’s chief financial officer. City Commerce has assets of $135 million and branches in Santa Barbara, Goleta and Ventura. Mid-State has 32 offices in San Luis Obispo, Santa Barbara and Ventura counties. Mid-State shares fell 88 cents to close at $26.75 on Nasdaq. City Commerce shares rose 38 cents to close at $18.13 in over-the-counter trading.