Preferred Bank in Los Angeles has agreed to buy United International Bank in Flushing, N.Y.
The $2.1 billion-asset Preferred said in a press release Monday that the acquisition involves a cash payment equal to the $179 million-asset United International's total shareholder's equity as of five days prior to closing, plus $1.2 million. The deal is expected to close in the fourth quarter.
"This transaction provides us a tremendous opportunity to enter this important market," Li Yu, Preferred's chairman and chief executive, said in the release. The acquisition "will also allow us to offer UIB's clients a greater suite of products and services and a significantly expanded legal lending limit."
Preferred said it expects the transaction to be accretive to next year's earnings per share and to have minimal dilution to tangible book value.
Sandler O'Neill and Manatt, Phelps & Phillips advised Preferred. Schiff Hardin advised United International.