Cathay Buys New Asia Bancorp

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Los Angeles-based Cathay General Bancorp said that it has agreed to purchase New Asia Bancorp Inc., owner of New Asia Bank, for $23.5 million in cash and stock, Cathay said in a release.


Cathay owns bank branches in California, Massachusetts, New York, Texas and Washington and with this purchase extends into Chicago, where New Asia Bancorp owns three branches.


New Asia Bancorp, founded in 1987, has assets of about $140 million, loans of $110 million, deposits of $118 million, and total shareholders equity of approximately $11.9 million.


According to Cathay, majority holders of New Asia Bancorp agreed to support the transactions and upon the completion of the merger New Asia Bancorp stockholders will be entitled to receive the merger consideration, at their election, in cash, in shares of Cathay common stock or in a combination of cash and shares of Cathay common stock. Hovde Financial LLC served as financial advisor to New Asia Bancorp while Wachtell, Lipton, Rosen & Katz; and Schiff Hardin LLP served as legal counsel to Cathay and New Asia Bancorp respectively.