City National to Buy American Pacific

Beverly Hills-based City National Corp. said it will buy American Pacific State Bank, based in Sherman Oaks, for $89 million in cash to expand in the San Fernando Valley area. City National will pay $15.65 for each of American Pacific’s 5.5 million shares outstanding. American Pacific stock was unchanged at $12.88 in over-the-counter trading Monday. City National said the price represents 2.75 times American Pacific’s book value.

American Pacific operates eight branches in San Fernando Valley and has $414 million in assets. City National has 38 branches in Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura counties. The purchase is expected to be completed later this year, bringing City National’s total assets to $6.7 billion. City National last year bought Long Beach-based Harbor Bancorp. City National shares rose 50 cents to close at $40.25 on the New York Stock Exchange.