Cowlitz Bancorp of Longview, Wash., is to enter Seattle through a newly announced agreement to buy a banking company that caters to various ethnic communities.
Cowlitz, which has $287 million of assets, said Wednesday that it would pay $5.8 million to $6.9 million in stock, "depending on the outcome of certain matters prior to closing," for the $113 million-asset AEA Bancshares Inc. The deal is expected to close in the fourth quarter.
AEA owns the one-branch Asia-Europe-Americas Bank, which serves immigrants from nearly 30 countries. Cowlitz said the branch is strategically located to attract many businesses it would like as customers.
Last August the $3.2 billion-asset Capitol Bancorp of Lansing, Mich., withdrew a $17 million offer for AEA. Regulators had slapped AEA with a cease-and-desist order in May for problems that included weak management, lax oversight by the board, and poor asset quality.
AEA is still operating under that order, said its president, Chuck Brooks.
