Terminated bank deal in Texas takes nasty turn
Hanmi Financial in Los Angeles has terminated its deal to purchase SWNB Bancorp in Houston.
The $5.4 billion-asset Hanmi said in a regulatory filing Wednesday that it walked away from the deal because of SWNB’s “willful and material breaches of its covenants and the failure of SWNB to obtain the required SWNB shareholder vote.” It did not detail the breaches.
Hanmi is demanding that the $405 million-asset SWNB pay a termination fee and cover other costs, expenses and damages. While Hanmi did not specify an amount, the merger agreement had a $3.1 million termination fee.
SWNB was unable to secure enough shareholder votes in August to approve the deal. The vote came nearly two weeks after Hanmi committed a larger cash consideration in hopes of getting the deal approved.
Hanmi said in its filing that it is “currently assessing its options with regard to any additional actions it may take in regard to the matter and will make further disclosure at such time as determinations have been made.”
SWNB did not immediately respond to a request for comment.