East West Bancorp to Acquire American International Bank
SAN MARINO, Calif.--(BUSINESS WIRE)--Sept. 17, 1999--East West Bancorp Inc. (Nasdaq/NM:EWBC), parent company of East West Bank, and American International Bank (AIB), today announced that they have signed a definitive agreement for East West Bank to purchase AIB for approximately $33.8 million in an all-cash transaction.
Completion of the merger is anticipated in the first quarter of 2000 and is subject to normal regulatory approvals and to AIB shareholder approval. East West Bancorp intends to merge AIB into East West Bank and anticipates this merger will be accretive to earnings in the first year of acquisition.
American International Bank is a California state-chartered bank with eight branches in downtown Los Angeles, Alhambra, Carson, Cerritos, City of Industry, Glendale, Tarzana and Torrance. Over its 21-year history, AIB built its niche by servicing small-to-medium sized companies involved in international trade and other areas, as well as offering a full range of personal banking products and services to a predominately Chinese-American customer base. At June 30, 1999, AIB had total assets of $213 million and total common shareholders' equity of $21.3 million.
"The acquisition complements our long-term growth objectives by extending our geographic reach in Southern California," said Dominic Ng, chairman, president and chief executive officer. "This merger further establishes our bank as one of the largest Southern California commercial banks providing financial services predominately to the Chinese-American community.
"Both East West Bank and American International Bank emphasize profitability and efficiency while maintaining superior customer service. We look forward to welcoming AIB into the East West family."
Kathleen L. Kellogg, president and chief executive officer of American International Bank, said: "We are very pleased to be merging with East West Bank. Joining East West will provide greater resources, expanded services, added convenience and even greater opportunities for our customers. East West's philosophy of focusing on commercial lending and trade finance while also providing quality financial products and superior customer service fits well with AIB's approach."
East West Bancorp is a publicly owned company with more than $2 billion in assets whose stock is traded on the Nasdaq National Market under the symbol "EWBC." The company's wholly owned subsidiary, East West Bank, is the fourth-largest commercial bank with headquarters in Southern California and 22 branches throughout Los Angeles, Orange, San Francisco and Santa Clara counties. It is also one of the largest financial institutions in the nation focusing on the Chinese-American community. |
