First Interstate’s Merger With Levy Bank OKd

First Interstate Bancorp announced Tuesday that the Federal Reserve Board has given it permission to proceed with the acquisition of the Bank of A. Levy, Ventura County’s largest independent bank.

As completion of the Jan. 31 merger approaches, First Interstate said it plans to close three branches:

* County Center office, 5808 E. Telephone Road, Ventura. The accounts will be transferred to the First Interstate branch at 5751 Telephone Road, Ventura;

* Thousand Oaks office, 137 E. Thousand Oaks Blvd., Thousand Oaks, with accounts to be transferred to First Interstate’s branch at 180 N. Moorpark Road, Thousand Oaks; and

* Westlake office, 3815 E. Thousand Oaks Blvd., Thousand Oaks, consolidating to First Interstate’s branch at 3965 E. Thousand Oaks Blvd., Thousand Oaks.

In addition, the Levy branch at 3907 Cochran St. in Simi Valley will be relocated to Sycamore Plaza, 2860 Cochran St., Simi Valley. The new offices are the former site of a HomeFed Bank.

The Bank of A. Levy’s 13 remaining branches will continue to operate in their current locations until the conversion, scheduled for April 21, said Rich Wyler, a spokesman for First Interstate. After that date, they will become First Interstate branches, he said.

Three First Interstate branches in Ventura County will also be closed as a result of the merger, Wyler said.

First Interstate’s Oxnard office at 300 W. 3rd St. will be consolidated with the Levy branch at 143 W. 5th St., Oxnard; First Interstate’s Simi office at 2820 Los Angeles Ave. will be consolidated with the Levy branch at 1200 Los Angeles Ave., Simi Valley, and First Interstate’s Ventura office at 2610 E. Main St. will be consolidated with the Levy branch at 2499 Harbor Blvd., Ventura.

All 350 employees at both banks who reside in Ventura County will have to reapply for positions at the 19 First Interstate branches that will exist after the merger, Wyler said. Ventura County employees will be given preference for the job slots, but about 100 layoffs are expected, officials said.

Wyler would not comment on severance packages being offered to employees who do not stay with the company. But a source inside the company said the benefits range from two to eight weeks pay, depending on seniority.