U.S. Bancorp Buys California Bank

U.S. Bancorp has signed an agreement to acquire a California bank holding company for $327 million, the companies announced today.

The Northwest’s largest banking company will buy 36-branch California Bancshares Inc. under an agreement calling for each share of California Bancshares common stock to be converted into .95 shares of U.S. Bancorp stock.

California Bancshares also granted U.S. Bancorp an option to acquire 19.9 percent of California Bancshares stock.

U.S. Bancorp will add the branches to its U.S. Bank of California operations.

“The addition of this highly respected company to our U.S. Bank of California franchise provides entry into densely populated, growing markets that we have had an interest in for some time,” said U.S. Bancorp Chairman and CEO Gerry Cameron.