BBCN Bancorp, Inc. (BBCN)

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BBCN is an acquisition machine....

BBCN Bancorp Announces Acquisition of Chicago-Based Foster Bankshares

Date : 04/16/2013 @ 9:00AM
Source : Business Wire
Stock : Bbcn Bancorp, Inc. (MM) (BBCN)
Quote : 13.27 0.47 (3.67%) @ 5:00PM

Los Angeles-based BBCN Bancorp, Inc. (NASDAQ: BBCN) and Chicago-based Foster Bankshares, Inc. today jointly announced the signing of a definitive agreement under which Foster Bankshares will merge with and into BBCN. The transaction positions BBCN as the leading Korean-American bank in Chicago and provides an entry to the Korean-American community in the greater Washington D.C. metropolitan area.

As of December 31, 2012, Foster Bankshares had total assets of $412.6 million, total loans of $326.9 million and total deposits of $357.4 million. Foster Bank, a wholly owned subsidiary of Foster Bankshares, was founded in 1989 as one of the first Korean-American banks in the Chicago area. Foster Bank is a state-chartered bank, operating eight branches in the Chicago metropolitan area and one branch in Annandale, Virginia. The transaction is expected to close during the second half of 2013, subject to regulatory approvals and satisfaction of other customary closing conditions.

“This partnership underscores BBCN’s strategic objective to be the dominant Korean-American bank in the markets in which we operate,” said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp. “The combination adds the rich heritage of one of Chicago’s first Korean-American banks to BBCN. As the logistical hub to commerce, finance and trade in the Midwest, the Chicago market represents a large and solid base from which we see longer term opportunities to grow our franchise. In addition, we are excited to be expanding our banking footprint into the D.C. metropolitan area, a region that represents one of the fastest growing populations of Korean-Americans in the country.”

“We are very pleased to be joining the BBCN family,” said Paul Byungtag Kim, President and Chief Executive Officer of Foster Bankshares. “We believe this is an excellent opportunity for our shareholders, customers and employees to realize enhanced value by being a part of an organization with considerably deeper resources, operational scale and a steady stream of core earnings. We look forward to continuing our legacy of excellent customer service and fostering the healthy growth of our communities.”

Under the terms of the merger agreement, the transaction is valued at approximately $4.6 million, valuing each outstanding share of Foster common stock at $34.67. Foster shareholders will have a choice between electing to receive the cash value per share or, for shareholders who qualify as accredited investors, 2.62771x shares of BBCN common stock for each share of Foster Bankshares or a combination thereof, with no limitations on the consideration mix. The consideration for the transaction is subject to reduction in certain events. Foster has no outstanding options or warrants.

On a pro forma combined basis including BBCN’s recent acquisition of Pacific International Bancorp and the proposed acquisition Foster Bankshares, BBCN would have total assets of $6.2 billion, total loans outstanding of $4.8 billion and total deposits of $4.9 billion as of December 31, 2012. Upon completion of the transaction, BBCN will increase its presence in Chicago from two branches, including a new BBCN branch to be opened during the current second quarter, to 10 branches. In addition, the transaction will provide BBCN with a first entry point to the D.C. metropolitan market with a branch in Annandale and a self-service ATM in Centreville, Virginia.

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