With the acquisition of American Continental Bank, which is valued at around $41.48 per share, or a total of around $82.1m, TCB is enabled to enter the Greater Los Angeles metropolitan area and the US market
TCB to acquire American Continental Bank. (Credit: Scott Graham on Unsplash)
Taiwan-based Taichung Commercial Bank (TCB) has signed an agreement to acquire American Continental Bancorp, the holding company of American Continental Bank.
Under the terms of the merger deal, TCB will acquire American Continental Bancorp at a price of around $41.48 per share, for a total consideration of $82.1m in cash.
The transaction is expected to close in the early first quarter of 2023, subject to certain customary closing conditions, including all the necessary regulatory approvals.
TCB said that the acquisition will help expand its franchise to the Los Angeles, Washington, and Texas markets and serve its large community of Asian-Americans.
TCB president David Jia said: “We are excited to be entering the Los Angeles, Washington, and Texas markets and intend to open new branches in the United States.
“We believe that this transaction will position us well for the continued growth of the TCB franchise and the creation of value for our shareholders in the years ahead.”
“American Continental is an excellent cultural fit with TCB, which had total assets of $26.240 billion as of June 30, 2022, based upon the exchange ratio at that time between the New Taiwan Dollar and the USD, as we have complementary business models, strong residential mortgage loan production platforms, and a focus on the Chinese-American market.”
Based in the City of Industry, California, American Continental Bank had total assets of $324.4m, total gross loans of $245.7m, and total deposits of $271.3m as of 30 June 2022.
The bank primarily serves the Chinese American communities in the City of Industry and surrounding regions in Los Angeles, Orange, Riverside, and San Bernardino Counties.
It offers commercial real estate loans, SBA loans, construction loans, land loans, apartment loans, general commercial loans and residential housing loans, and other business banking services.
The company operates five branches in the City of Industry, Alhambra, Chino Hills, Arcadia locations in California, and Bellevue locations in Washington.
TCB president and chief executive officer Terry Lou said: “TCB’s focus on high engagement client service, disciplined underwriting standards, strong asset quality and commitment to employee development aligns well with American Continental’s culture and provides me great confidence for the future of the combined organisation.”
Janney Montgomery Scott served as financial advisor and Loren P Hansen, APC as legal counsel to American Continental Bancorp, on this transaction.
PricewaterhouseCoopers Financial Advisory Taiwan served as a financial advisor, and PricewaterhouseCoopers Legal Taiwan was legal counsel to TCB.