Cathay General Bancorp has completed the acquisition of SinoPac Bancorp, the US subsidiary of Bank SinoPac, for about $351.6m.
SinoPac Bancorp is the parent company of Far East National Bank (FENB), which currently operates nine branches in California, and a representative office in Beijing.
Headquartered in Los Angeles, FENB has over 170 employees and total assets of more than $1.3bn. offering both corporate and individual banking services.
Under the terms of the acquisition agreement that was signed in July last year, the transaction also included additional post closing payments based on the realization of certain assets of FENB.
Cathay General Bancorp is the holding company for Cathay Bank, which was founded in 1962 and currently operates 34 branches in California, 12 branches in New York State, and three in the Chicago, Illinois area.
With three branches in Washington State and two in Texas, the bank also has presence in Maryland, Massachusetts, Nevada, New Jersey, and Hong Kong,
As of March 31, 2016, SinoPac Bancorp had total assets of $1.3bn, total loans of $956m and total deposits of $964m.
Founded in 1992, Bank SinoPac is a Taiwan-based bank holding company, with total assets of $50bn and serving over 2.5 million customers throughout Asia and North America from over 200 service locations. It acquired FENB in 1997.
Cathay chairman of the board, chief executive officer, and president Dunson K.Cheng earlier said: “We are very excited about this transaction and the additional scale it adds to our franchise in Los Angeles, our home market, as well as Orange County, San Francisco, and Silicon Valley and the opportunity to deploy a portion of our capital to generate strong returns.”
In June, Cathay said that it has obtained all required US regulatory approvals for the acquisition.
Image:Cathay General Bancorp is the holding company for Cathay Bank. Photo: courtesy of stockimages/Freedigitalphotos.net.