First Security to Buy California State Bank

First Security Corp. agreed to buy California State Bank for about $270 million, as the Salt Lake City-based bank expands in Southern California. West Covina-based California State Bank, which has assets of $849.2 million and 17 branches, will receive stock from First Security, which has assets of about $17.3 billion. Shareholders would receive 1.42 shares of First Security stock for each California State share. After a 50% First Security stock dividend payable on Feb. 24, California State will receive 2.13 shares. That values the company at $52.81 a share, a 21% premium over California State’s closing price Wednesday. “We are excited to expand First Security’s financial-services reach into Southern California,” Spencer Eccles, chairman and chief executive of First Security, said in a statement. Banks based outside California are eagerly buying banks in the state. Zions Bancorp bought GB Bancorp, a San Diego-based bank, for $173 million in stock in November. In Nasdaq trading, First Security shares fell $1.94 to close at $35.25; California State shares rose $3.75 to $47.50.