East West Bancorp Enters Into Definitive Agreement for the Acquisition of United National Bank
June 30 2005 - 8:00PM
PR Newswire (US)
East West Bancorp Enters Into Definitive Agreement for the
Acquisition of United National Bank SAN MARINO, Calif., June 30
/PRNewswire-FirstCall/ -- East West Bancorp, Inc. (NASDAQ:EWBC),
parent company of East West Bank, one of the nation's premier
community banks and a leading institution focused on the
Chinese-American and other niche markets, today announced that it
has entered into a definitive agreement for the acquisition of
United National Bank, a $970 million asset commercial bank
headquartered in San Marino, California. The acquisition will
further solidify East West Bank's position in the ethnic
Chinese-American market. United National Bank has a strong
franchise in this market, serving both small to mid sized
commercial enterprises, as well as an attractive base of core
retail customers. United National Bank operates 11 branches, with
eight located in Southern California, two in Northern California,
and one in Houston, Texas. Dominic Ng, Chairman, President and CEO
of East West Bank, commented, "The merger with United National Bank
is an excellent strategic opportunity for East West Bank to
significantly enhance our already strong positions in key markets
and increase value to our shareholders now and in the longer term.
This is an important collaboration for East West and we look
forward to strengthening our team with the integration of United
National Bank's officers and employees." "Just as significant as
the strong strategic fit for our institutions is the cultural fit,"
said Edward Lo, Chairman and CEO of United National Bank. "East
West Bank and United National Bank share comparable values,
operating philosophies and views of the future." Andy Yen,
President of United National Bank, said, "The increased scope and
scale will make the combined institution an even stronger industry
leader. We are very excited about going forward as a unified
institution with a strong financial position and strong balance in
our customers, people, industry markets and geographies." Under the
terms of the definitive agreement, the shareholder of United
National Bank will receive a value of 2.3 times closing book value,
subject to certain adjustments. The purchase price, if calculated
based on March 31 book value, would be approximately $164.7
million. Sixty to seventy percent of the price will be paid in
stock with the remainder in cash, at the election of the seller.
The transaction has been approved by the boards of directors of
both banks. The transaction, which is anticipated to close late in
the third quarter or in the fourth quarter of 2005, is subject to
customary closing conditions and receipt of required regulatory
approvals. The transaction will be marginally accretive to earnings
during 2005, since it is expected to close late in the year. The
estimated impact of the acquisition during 2006 is expected to be
approximately $0.08 per share. About East West East West Bancorp is
a publicly owned company, with $6.4 billion in assets, whose stock
is traded on the Nasdaq National Market under the symbol "EWBC".
The company's wholly owned subsidiary, East West Bank, is the
second largest independent commercial bank headquartered in Los
Angeles. East West Bank serves the community with 45 branch
locations throughout Los Angeles, Orange, San Francisco, Alameda,
Santa Clara, and San Mateo counties and a Beijing Representative
Office in China. It is also one of the largest financial
institutions in the nation focusing on the Chinese-American
community. For more information on East West Bancorp, visit the
company's website at http://www.eastwestbank.com/. Forward-Looking
Statements This release may contain forward-looking statements,
which are included in accordance with the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995 and
accordingly, the cautionary statements contained in East West
Bancorp's ("East West") Annual Report on Form 10-K for the year
ended Dec. 31, 2004 and other filings with the Securities and
Exchange Commission are incorporated herein by reference. These
factors include, but are not limited to: the effect of interest
rate and currency exchange fluctuations; competition in the
financial services market for both deposits and loans; East West's
ability to efficiently incorporate acquisitions into its
operations; the ability of East West and its subsidiaries to
increase its customer base; and regional and general economic
conditions. Actual results and performance in future periods may be
materially different from any future results or performance
suggested by the forward-looking statements in this release. Such
forward-looking statements speak only as of the date of this
release. East West expressly disclaims any obligation to update or
revise any forward-looking statements found herein to reflect any
changes in East West's expectations of results or any change in
events. For more information at the Company: Julia Gouw, Chief
Financial Officer (626) 583-3512 DATASOURCE: East West Bancorp,
Inc. CONTACT: Julia Gouw, Chief Financial Officer of East West
Bancorp, Inc., +1-626-583-3512 Web site:
http://www.eastwestbank.com/
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