BBCN Bancorp, Inc. (NASDAQ: BBCN), based in Los Angeles, and Pacific International Bancorp, Inc. (OTCBB: PIBW), based in Seattle, today jointly announced the signing of a definitive agreement under which Pacific International Bancorp will merge with BBCN.
Pacific International has total assets of approximately $200 million, and its primary subsidiary, Pacific International Bank, a state-chartered bank, has four bank locations in the Seattle metropolitan area. Upon completion of the transaction, which is expected to close during first quarter 2013, BBCN will have six branches in the Seattle area.
Under the terms of the merger agreement, the stock-for-stock transaction is valued at approximately $8.2 million, valuing each outstanding share of Pacific International common stock at $1.75. As part of the transaction, Pacific International’s $6.5 million in Series A Preferred Stock issued under the U.S. Treasury’s TARP Capital Purchase Program will be retired.
“This transaction will position BBCN as a major player in the Pacific Northwest Korean American community,” said Alvin D. Kang, President and Chief Executive Officer of BBCN Bancorp. “With this transaction, BBCN will be the market leader in Southern California, Northern California, New York and the Seattle metropolitan area. We expect to have a smooth and seamless integration, which will quickly position us to achieve the benefits of this merger for our customers, our employees and our shareholders.”
“Given BBCN’s strong financial position, supported by a steady stream of core earnings and deep leadership bench, BBCN was our top choice for a partner,” said Paul G. Sabado, President and Chief Executive Officer of Pacific International. “This transaction will enhance our resources, operational scale and banking expertise, thereby increasing our ability to serve our customers in what continues to be a challenging regulatory and economic environment. Both of our organizations have served the Seattle area for more than 10 years, and we look forward to providing our expanded customer base with increased accessibility and continuing our heritage of providing excellent customer service.”