Pacific International Bancorp – PIBW – Will merge with BBCN
NASDAQ: BBCN), based in Los Angeles, and Pacific International Bancorp, Inc. (OTCBB: PIBW), based in Seattle, jointly announced the signing of a definitive agreement under which Pacific International Bancorp (PIBW) will merge with BBCN.
PIBW has total assets of approximately $200 million, and its primary subsidiary, Pacific International Bank, a state-chartered bank, has four bank locations in the Seattle metropolitan area. Upon completion of the transaction, which is expected to close during first quarter 2013, BBCN will have six branches in the Seattle area.
Under the terms of the merger agreement, the stock-for-stock transaction is valued at approximately $8.2 million, valuing each outstanding share of Pacific International common stock at $1.75. As part of the transaction, Pacific International’s $6.5 million in Series A Preferred Stock issued under the U.S. Treasury’s TARP Capital Purchase Program will be retired.
“This transaction will position BBCN as a major player in the Pacific Northwest Korean American community,” said Alvin D. Kang, President and Chief Executive Officer of BBCN Bancorp. “With this transaction, BBCN will be the market leader in Southern California, Northern California, New York and the Seattle metropolitan area. We expect to have a smooth and seamless integration, which will quickly position us to achieve the benefits of this merger for our customers, our employees and our shareholders.”
“Given BBCN’s strong financial position, supported by a steady stream of core earnings and deep leadership bench, BBCN was our top choice for a partner,” said Paul G. Sabado, President and Chief Executive Officer of Pacific International. “This transaction will enhance our resources, operational scale and banking expertise, thereby increasing our ability to serve our customers in what continues to be a challenging regulatory and economic environment. Both of our organizations have served the Seattle area for more than 10 years, and we look forward to providing our expanded customer base with increased accessibility and continuing our heritage of providing excellent customer service.”
The transaction is subject to regulatory approval, the approval of the shareholders of Pacific International, and other customary closing conditions.
BBCN was advised by the law firm of Mayer Brown LLP and was provided with a fairness opinion by Raymond James. Pacific International was advised by the investment banking firm of Keefe, Bruyette & Woods, Inc. and the law firm of Graham & Dunn PC.
About BBCN Bancorp, Inc.
BBCN Bancorp, Inc. is the parent company of BBCN Bank, the largest Korean American bank in the nation with more than more than $5.3 billion in assets as of September 30, 2012. The Company is a result of the merger of equals of Nara Bancorp, Inc. and Center Financial Corporation completed on November 30, 2011.
About Pacific International Bancorp, Inc. – PIBW
Pacific International Bancorp, Inc. (PIBW) is the holding company of Pacific International Bank which is the oldest and largest Korean American Bank headquartered in the Pacific Northwest. Pacific International Bank opened in November 2001. It is a business bank and has been a significant supporter of small businesses within the Korean American and other minority communities. Small Business Administration (SBA) lending has been a top priority Pacific International Bank, which has sponsored and held several small business financing workshops for the local small business community. Pacific International Bank has branches in Seattle, Tacoma, Lynnwood and Federal Way and employs 51 people. The bank is a preferred (PLP) Lender for SBA loans and its deposits are insured by FDIC to the fullest extent possible. Pacific International Bank is an Equal Opportunity Lender.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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