Wilshire Bancorp (WIBC) in Los Angeles has agreed to buy a rival local Korean-American bank, Saehan Bancorp (SAEB).

The $2.8 billion-asset Wilshire would pay about $105 million in cash and stock for the $542 million-asset Saehan, the companies announced Monday. The sale price of 42 cents a share is a discount of roughly 5% to Saehan's Monday closing price of 44 cents.

Wilshire would pay $50.4 million in cash and 7.2 million shares of stock, and the final value of the merger will depend on Wilshire's share price when the deal closes.

The deal would add 11 branches to Wilshire's network, bringing it to 35.

"With significant overlap in our operations, we believe that we will have a high level of cost savings opportunities that will enhance the combined bank's earnings power," said Jae Whan Yoo, president and chief executive of Wilshire Bancorp and its subsidiary, Wilshire State Bank, in a press release. "In addition, we think there are good opportunities to restructure Saehan Bank's balance sheet to enhance the amount of net interest income generated from their operations."

Saehan shareholders who own about 51% of the company have entered into agreements requiring them to vote in favor of the merger with Wilshire, the press release said. The companies expect the merger to close by the end of the year.

Saehan was freed from a consent order with the Federal Deposit Insurance Corp. in March. It had a Tier 1 capital ratio of 13.4% and total risk-based capital of 21.7% as of the end of May, according to the FDIC.

Last year, Hana Financial Group, in Seoul, South Korea, agreed to buy a 51% stake in Saehan, but the deal fell through two months later. No reason for the termination was announced.

This is Wilshire's second announced acquisition in just over a month. In June, it agreed to pay $32.5 million for BankAsiana in Palisades Park, N.J., in a deal that would significantly expand Wilshire's presence on the East Coast.

There has been significant consolidation among Korean-American banks this year. In April, BBCN Bancorp in Los Angeles agreed to buy Chicago's Foster Bancshares; in January, Hanmi Financial, also in Los Angeles, hired an investment bank to explore a sale.

Macquarie Capital advised Wilshire on the merger agreement with Saehan; B. Riley & Co. advised Saehan.

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