The holding companies for Los Angeles-based Cathay Bank and Asia Bank, N.A., which operates on the East Coast, announced today that they have entered into a merger agreement.
“This is a merger that will significantly increase our presence in New York City, where we already have total loans of $1.8 billion and nine branches. It also extends our branch network to Rockville, a suburb of Washington. D.C.,” said Dunson K. Cheng, board chairman, CEO and president of Cathay General Bancorp and Cathay Bank.
Asia Bancshares Inc.’s Asia Bank subsidiary began operating 30 years ago and has three branches in New York and one branch in Maryland. As of Sept. 30, Asia Bancshares reported total assets of $497 million, loans of $419 million and deposits of $418 million.
Cathay Bank, founded in 1962, currently operates 32 branches in California, nine branches in New York, three in the Chicago area, three in Washington, two in Texas and one each in Massachusetts, Nevada, New Jersey, Hong Kong, as well as representative offices in Taipei and Shanghai.
Jentai Tsai, chairman of the board and CEO of Asia Bancshares, will join Cathay Bank as chairman of its advisory board in the Eastern region, according to Cheng.
Under the terms of the definitive merger agreement, Cathay will acquire Asia Bancshares for about $126 million, subject to adjustment, the companies reported.
The transaction, which has been unanimously approved by the boards of directors of both Cathay and Asia Bancshares, is expected to be completed during the second quarter and is subject to approval by Asia Bancshares shareholders, regulatory approvals and other customary closing conditions.
— City News Service