Hanmi Financial, Central Bancorp To Merge - Quick Facts

(RTTNews) - Hanmi Financial Corp. (HAFC), the holding company for Hanmi Bank, Monday said it agreed to acquire Central Bancorp, Inc (CEBK), parent of Texas-based United Central Bank, for $50 million in cash, subject to potential purchase price adjustments, representing about 62 percent of CBI's tangible book value as of September 30. The resultant combination will have 51 banking offices and 2 loan production offices in California, Texas, Illinois, New York, New Jersey, Virginia and Georgia.

Excluding one-time merger expenses, the transaction is expected to immediately add to 2014 earnings and be significantly accretive to 2015 earnings and beyond; and is expected to generate internal rate of return in excess of 20 percent for Hanmi shareholders. The deal is expected to close in the second half of 2014.

As of September 30, 2013, CBI had about $1.6 billion in assets, $0.7 billion in gross loans and $1.4 billion in deposits, and 24 branches across Texas, Illinois, New York, New Jersey, Virginia and Georgia. Upon closure, Hanmi will have about $4.3 billion in assets, $2.8 billion in gross loans, and $3.8 billion in deposits.

Key strategic benefits of the merger include access to markets with large Asian-American communities, creating business opportunities by leveraging Hanmi's brand and business strategic, ability to realize significant cost savings and operational efficiencies for the combined company and opportunity to prudently deploy capital.