Thousand Oaks-based California Oaks State Bank will be acquired by California United Bank, the two companies announced Aug. 25.

California United, an Encino-based company, will pay about $17.3 million for California Oaks, half in cash and half in shares of common stock, according to a joint news release from the banks.

California United said it plans to keep both California Oaks branches open. That gives the bank six full-service branches in Southern California and three commercial lending offices, two in Southern California and one in the San Francisco Bay Area.

At June 30, 2010, California United Bank had total assets of $532.0 million and total deposits of $420.2 million, and California Oaks State Bank had assets of $136.7 million and total deposits of $114.0 million. When the deal closes, California United Bank will have over $650.0 million in assets and $530.0 million in deposits.

California Oaks had been in the middle of the effort to raise $100 million in capital. The bank announced in late February that it would sell 8 million shares at $12.50 each in a capital raise intended to help it pay off TARP funds and snap up troubled bank assets.

The acquisition has been unanimously approved by the boards of directors of both banks. It still must be approved by shareholders and federal regulators.

The banks said they expect the deal to close in the fourth quarter of this year. California Oaks State Bank shareholders will receive approximately $11.35 per share if the transaction closes by Dec. 31, 2010 or $11.30 per share if the transaction closes after Dec. 31, 2010. California Oaks stock, traded on the pink sheets as COSB, closed at $6 on Aug. 24, the day before the deal was announced.