Acquisition Will Double the Size of Wilshire State Bank’s New York/New Jersey Franchise
In a press release scheduled to be released from Los Angeles on June 10, 2013, Wilshire Bancorp, Inc. (Nasdaq:WIBC), the parent company of Wilshire State Bank, says it is announcing on Monday the signing of a definitive agreement under which Wilshire will acquire BankAsiana. BankAsiana is a New Jersey state chartered commercial bank with three branches serving the Korean-American community in the New York/New Jersey market. As of March 31, 2013, BankAsiana had total assets of $207.3 million, total net loans of $161.2 million and total deposits of $164.6 million.
The transaction is structured as a series of mergers in which BankAsiana will ultimately merge into Wilshire State Bank, with Wilshire State Bank as the surviving entity. Under terms of the definitive agreement, the transaction is valued at approximately $32.5 million, which will be paid to BankAsiana shareholders and option holders in cash. The transaction is expected to close before the end of 2013, and is subject to approval by the shareholders of BankAsiana, applicable bank and other regulatory approvals and the satisfaction of other customary closing conditions.
“We believe the acquisition of BankAsiana offers significant financial and strategic benefits for Wilshire Bancorp,” said Jae Whan Yoo, President and Chief Executive Officer of Wilshire Bancorp and Wilshire State Bank. “BankAsiana is the largest Korean-American bank headquartered in the New York/New Jersey market, which is the second largest Korean-American market in the U.S. This transaction will double the size of Wilshire’s New York/New Jersey franchise, further diversifying the loan portfolio and providing greater exposure to fast growing market segments in New York and New Jersey.
“BankAsiana has a healthy, strong and attractive balance sheet and is a proven developer of new business relationships. With higher lending limits, Wilshire Bancorp will be able to capitalize on additional growth opportunities within the existing BankAsiana customer base. In addition, there is significant overlap in our operations that we believe provides meaningful opportunities to enhance our overall efficiency,” said Mr. Yoo. “We believe this proposed acquisition is a smart use of our excess capital, allowing us to consolidate a smaller, in-market player that has a similar business model and corporate culture to Wilshire.”
“Wilshire is an excellent partner for BankAsiana that will enable us to better serve our customers,” said Hong Sik Hur, President and Chief Executive Officer of BankAsiana. “We will be able to offer our customers a broader suite of products and services, and have the financial capacity to accommodate their larger borrowing needs. We are very pleased to be joining the Wilshire family and look forward to leveraging Wilshire’s enhanced resources in order to provide a superior banking experience for our customers.”
ABOUT WILSHIRE BANCORP
Headquartered in Los Angeles, Wilshire State Bank operates 25 branch offices in California, Texas, New Jersey and New York, and eight loan production offices in Dallas and Houston, TX, Atlanta, GA, Aurora, CO, Annandale, VA, Fort Lee, NJ, Newark, CA, and Bellevue, WA, and is an SBA preferred lender nationwide. Wilshire State Bank is a community bank with a focus on commercial real estate lending and general commercial banking, with its primary market encompassing the multi-ethnic populations of the Los Angeles Metropolitan area. For more information, please go to www.wilshirebank.com.
ABOUT BANKASIANA
BankAsiana is a New Jersey state-chartered, FDIC-insured commercial bank with a focus on the Korean-American community and other ethnic minorities in the New York/New Jersey area. Headquartered in Palisades Park, New Jersey, BankAsiana operates three branch offices, two in New Jersey, and one in New York. For more information, please go to www.bankasiana.com.