FirstFed Financial Will Buy 2 L.A.-Area Banks

FirstFed Financial Corp. will acquire two California-based banks from City Holding Co., the No. 3 West Virginia bank, for $23 million in cash to gain branches in the Los Angeles area.

The transaction is expected to close in the fourth quarter, the companies said. Santa Monica-based FirstFed, the holding company for First Federal Bank of California, will acquire Frontier States Bank and Del Amo Savings Bank.

FirstFed shares were unchanged at $34.99 on the NYSE. The bank has $4.6 billion in assets and 25 Southern California branches. City Holding shares were unchanged at $11.74 on Nasdaq.