Los Angeles-based BBCN Bancorp, Inc. (BBCN) and Chicago-based Foster Bankshares, Inc. Tuesday said they have signed a definitive agreement for the merger of Foster Bankshares with and into BBCN. BBCN expects the merger to position it as the leading Korean-American bank in Chicago, providing an entry to the Korean-American community in the greater Washington D.C. metropolitan area. The transaction, valued at approximately $4.6 million, is expected to close in the second half of 2013.
The deal values each share of Foster stock at $34.67. Foster shareholders have been given a choice to choose between receiving cash 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 of the transaction is however, subject to reduction.
Commenting on the development, Kevin Kim, CEO of BBCN Bancorp said, "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."
As of the end of last year, Foster Bankshares had total assets of $412.6 million, total loans of $326.9 million and total deposits of $357.4 million.
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