Hanmi Financial in Los Angeles has agreed to buy SWNB Bancorp in Houston.
The $5.3 billion-asset Hanmi said in a press release Monday that it will pay $76.7 million in cash and stock for the $411 million-asset parent of Southwestern National Bank. The deal, which is expected to close late in the third quarter, priced SWNB at 158% of its tangible book value.
SWNB’s six branches in the Texas cities of Houston, Dallas and Austin are in highly populated Asian-American communities. Most of its customers are of Chinese, Vietnamese and Indian descent. The company also has $261 million in loans and $347 million in deposits.
The deal should be 2.2% accretive to Hanmi’s 2019 earnings per share. It should take three years to earn back the expected 1.5% dilution to Hanmi’s tangible book value.
Hanmi plans to cut about 40% of SWNB's annual noninterest income, or roughly $5.1 million. The company expects to incur $3.5 million in merger-related charges.
“This transaction will bolster our footprint in attractive Texas banking markets,” C.G. Kum, Hanmi’s president and CEO, said in the release. “SWNB has a strong portfolio of assets with an excellent credit profile along with an attractive deposit base.”
D.A. Davidson and Luse Gorman advised Hanmi. Sheshunoff and Fennimore, Kay, Harrison & Ford advised SWNB.
Houston has seen a flurry of M&A deals since last fall. They include Hilltop Holdings' deal to buy Bank of River Oaks, Commercial Bancshares' deal for First Financial and Independent Bank's deal for Integrity Bancshares.