Citizens Bank Considers Offer of $12 Million

Citizens Bank of Costa Mesa said Tuesday that it is considering selling its three-office institution to an undisclosed buyer for approximately $12 million.

Paige Simpson, Citizen’s president, said that he was approached about a month ago by a buyer who offered to pay cash for the 13-year-old institution.

“We feel it’s a sincere offer and one that would benefit the (495) shareholders,” said Simpson, who owns 70,000 shares or about 7% of the company’s stock.

This marks the third time in two years that Citizen has entertained an offer to sell. The bank previously held talks with a group of Hong Kong investors as well as La Habra-based Landmark Bancorp. No sale resulted from either offer. Paige said that if the present deal goes through, the bank’s six directors and 100 employees would remain on staff and that he would continue to be Citizen’s president.

Referring to the prospective owner, Paige said, “They might put two people on the board. Otherwise they will not be visible.” Paige said he hopes to announce the buyer’s name and details of the proposed sale in two or three weeks.

“They said they did not want to change anything because the bank has been a high performer,” Paige added. “They see it as a good investment opportunity.”

As of June 30, Citizen’s Bank had $78.7 million in deposits, $62.9 million in loans and $87.4 million in assets, all up more than 10% compared with the same period in 1984.