Nara Bancorp and Center Financial Receive Final Regulatory Approval for Merger of Equals
November 07 2011 - 6:00AM
Business Wire
Nara Bancorp, Inc. (NASDAQ: NARA) and Center Financial
Corporation (NASDAQ: CLFC) today announced the receipt of approval
from the Federal Deposit Insurance Corporation (FDIC) for the
planned merger of Nara Bank and Center Bank. This represents the
final regulatory approval required for the merger of the two
companies. Approvals have previously been received from the
California Department of Financial Institutions (DFI) and the
Federal Reserve Bank of San Francisco (FRBSF).
In addition, Nara Bancorp announced that it has received
authorization from the DFI and FRBSF to terminate the board
resolutions at both the bank and holding company levels that had
previously been adopted at the request of the bank regulators. The
authorization to lift the board resolutions reflects the
improvement in the Company’s credit risk profile, credit
administration, profitability, and capital ratios. Previously,
Center Financial Corporation announced the termination of its
informal memorandum of understanding (MOU) with bank regulators at
both the bank and holding company levels.
“The receipt of regulatory approval from the FDIC represents the
last major step in closing the merger of Nara Bancorp with Center
Financial Corporation,” said Alvin D. Kang, President and Chief
Executive Officer of Nara Bancorp and the future President and
Chief Executive Officer of the combined company. “We look forward
to completing this transformational merger and providing the
communities we serve with an unquestionably strong and stable
financial institution that caters to the needs of Korean Americans
and other customers in our marketplace.”
The completion of the merger is subject to the satisfaction or
waiver of other customary closing conditions. The companies expect
to complete the merger by November 30, 2011.
About the Nara Bancorp and Center Financial Merger of
Equals
On December 9, 2010, Nara Bancorp and Center Financial announced
the signing of a definitive agreement to merge, a transaction that
will form the largest and strongest Korean American bank in the
United States. The combined company will be the only Korean
American bank with a national presence, with more than 40 branches
in Southern California, Northern California, New York, New Jersey,
Seattle and Chicago.
About Nara Bancorp
Nara Bancorp, Inc. is the parent company of Nara Bank, a
full-service community bank headquartered in Los Angeles with $3.02
billion in assets as of September 30, 2011. Nara Bank operates 23
full-service branches in California, New York and New Jersey, and a
loan production office in Texas. Founded in 1989 specifically to
serve the needs of Korean Americans, Nara Bank now serves a diverse
group of customers mirroring its communities. Nara Bank specializes
in core business banking products for small and medium-sized
companies, with an emphasis in commercial real estate and business
lending, SBA lending and international trade financing. Nara Bank
is a member of the Federal Reserve System and its deposits are
insured by the FDIC. Nara Bank is an Equal Opportunity Lender.
About Center Financial Corporation
Center Financial Corporation is the holding company of Center
Bank, a community bank offering a full range of financial services
for diverse ethnic and small business customers. Founded in 1986
and specializing in commercial and SBA loans and trade finance
products, Center Bank has grown to be one of the nation’s leading
financial institutions focusing on the Korean American community,
with total assets of $2.26 billion at September 30, 2011.
Headquartered in Los Angeles, Center Bank operates a total of 21
full-service branches and two loan production offices. The company
has 16 full-service branches located throughout Southern California
and two branches in Northern California. Center Bank also operates
two branches and one loan production office in the Seattle area,
one branch in Chicago and a loan production office in Denver.
Center Bank is a California state-chartered institution and its
deposits are insured by the FDIC to the extent provided by law.
Forward-Looking Statements
This press release contains statements regarding the proposed
transaction between Nara Bancorp and Center Financial, the expected
timetable for completing the transaction, future financial and
operating results, benefits and synergies of the proposed
transaction and other statements about the future expectations,
beliefs, goals, plans or prospects of the management of each of
Nara Bancorp and Center Financial. These statements are based on
current expectations, estimates, forecasts and projections and
management assumptions about the future performance of each of Nara
Bancorp and Center Financial and the combined company, as well as
the businesses and markets in which they do and are expected to
operate. These statements constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform
Act of 1995. Words such as “expects,” “believes,” “estimates,”
“anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,
“seeks,” and variations of such words and similar expressions are
intended to identify such forward-looking statements which are not
statements of historical fact. These forward-looking statements are
not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to assess. Actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements. The closing of
the proposed transaction is subject to closing conditions. There is
no assurance that such conditions will be met or that the proposed
transaction will be consummated within expected time frame, or at
all. If the transaction is consummated, factors that may cause
actual outcomes to differ from what is expressed or forecasted in
these forward-looking statements include, among things:
difficulties and delays in integrating Nara Bancorp and Center
Financial and achieving anticipated synergies, cost savings and
other benefits from the transaction; higher than anticipated
transaction costs; deposit attrition, operating costs, customer
loss and business disruption following the merger, including
difficulties in maintaining relationships with employees, may be
greater than expected, competitive pressures among depository and
other financial institutions may increase significantly and have an
effect on revenues; the strength of the United States economy in
general, and of the local economies in which the combined company
will operate, may be different than expected, which could result
in, among other things, a deterioration in credit quality or a
reduced demand for credit and have a negative effect on the
combined company’s loan portfolio and allowance for loan losses;
changes in the U.S. legal and regulatory framework; and adverse
conditions in the stock market, the public debt market and other
capital markets (including changes in interest rate conditions)
which would negatively affect the combined company’s business and
operating results.
For a more complete list and description of such risks and
uncertainties, refer to Nara Bancorp’s Form 10-K for the year ended
December 31, 2010, and Center Financial’s Form 10-K for the year
ended December 31, 2010, as well as other filings made by Nara
Bancorp and Center Financial with the SEC. Except as required under
the U.S. federal securities laws and the rules and regulations of
the SEC, Nara Bancorp and Center Financial disclaim any intention
or obligation to update any forward-looking statements after the
distribution of this press release, whether as a result of new
information, future events, developments, changes in assumptions or
otherwise.
Center Financial Corporation (MM) (NASDAQ:CLFC)
Historical Stock Chart
From Apr 2024 to May 2024
Center Financial Corporation (MM) (NASDAQ:CLFC)
Historical Stock Chart
From May 2023 to May 2024