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Sanwa Bank and Tokai Bank said Tuesday they will merge subsidiaries Sanwa Bank California and Tokai Bank of California on July 2 to create United California Bank.

It will be capitalized at $5.44 million and will be owned 81 percent by Sanwa and 19 percent by Tokai.

The amalgamation is part of the two banks’ strategy under UFJ Holdings Inc., which they formed with Toyo Trust & Banking Co. on Monday.

The two banks will also unite their Canadian subsidiaries as UFJ Bank Canada on July 3, and their Australian units as UFJ Australia Ltd. on Sept. 3.

While UFJ Bank Canada will be owned 67.5 percent by Sanwa and 32.5 percent by Tokai, UFJ Australia will be a wholly owned Sanwa unit.

Tokai’s branches in Los Angeles and Duesseldorf will end operations at the end of August after transferring their assets to Sanwa’s local branches.

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