Hanmi Financial (HAFC) in Los Angeles has agreed to buy Central Bancorp in Garland, Texas.
The $2.8 billion-asset Hanmi will pay $50 million in cash, or roughly 62% of Central's tangible book value. The transaction is expected to close in the second half of next year.
At Sept. 30, Central had $1.6 billion in assets, including $700 million in loans, and 24 branches in Texas, Illinois, New York, New Jersey, Virginia and Georgia. Hanmi said it expects the acquisition to be immediately accretive to next year's earnings, excluding merger costs, and "significantly accretive" in 2015.
"We believe the combined entity will be a significant competitive force in our markets and position the company for meaningful growth and earnings expansion," C. G. Kum, Hanmi's president and chief executive, said in a press release. "We remain committed to community banking, and to further diversifying our customer base, both ethnically and geographically. "For shareholders, the combination will increase the earnings and growth profile of the combined entity."
Hamni said in the release that the acquisition would make it the nation's second-biggest Korean-American bank with the top deposit market share in Texas, Illinois and Virginia.
Hanmi was advised by FBR Capital Markets and Sullivan & Cromwell. Central was advised by Sandler O'Neill and Bracewell & Giuliani.
The acquisition is a reversal for Hanmi, which hired advisor DelMorgan & Co. in January to help it explore strategic alternatives, including a possible sale.