Cathay General to Buy United Heritage

Cathay General Bancorp(CATY Quote), the holding company for Cathay Bank, said Tuesday that it agreed to acquire the Edison, N.J.-based United Heritage Bank for $9.4 million in cash.

The holders of more than 50% of the shares of United Heritage have agreed to vote their shares in favor of the merger proposal.

The company said that upon completion of the merger, United Heritage shareholders will be entitled to receive $9.40 a share in cash, without interest, and before adjustments, if any.

The transaction is expected to close in the first quarter of 2007, subject to regulatory approval and satisfaction of other customary conditions, the Los Angeles, Calif.-based bank added.

As of Sept. 30, United Heritage, which was founded in 1997, had total assets of about $60.4 million, total loans of about $40.0 million, total deposits of about $55.2 million, and total shareholders equity of about $5 million.

"Together with the nine branches that Cathay has in New York City, our new Edison, New Jersey branch will allow us to better serve our target market in the Greater New York area. This acquisition continues Cathay's nationwide expansion strategy as New Jersey becomes the seventh state served by Cathay's branch network," the company said.