Taiwan-Owned Taichung Commercial Bank to Acquire Los Angeles Area Bank

Posted on 10/02/2022


Disclosed on September 30, 2022, Taipei, Taiwan-based Taichung Commercial Bank Co., Ltd. (TCB) entered into a definitive merger agreement to acquire American Continental Bancorp, the bank holding company of American Continental Bank. Taichung Commercial Bank will acquire the bank in a cash transaction valued at approximately $82.1 million or approximately $41.48 per share calculated as of June 30, 2022. The actual cash consideration will be determined at closing based upon a multiple of 1.83 times adjusted book value of the bank at closing after subtracting costs of the transaction and other items.

American Continental Bank, a commercial bank based in the City of Industry, California, had total assets of $324.4 million, total gross loans of $245.7 million, and total deposits of $271.3 million as of June 30, 2022. Principally serving the Chinese-American communities in the City of Industry and surrounding communities located in Los Angeles, Orange, Riverside, and San Bernardino Counties, American Continental Bank has 5 branches located in City of Industry, Alhambra, Chino Hills, Arcadia (State of California), and Bellevue (State of Washington), and loan production offices located in Bellevue, Washington, Fremont, California, and in Carrollton, Texas, offering commercial real estate loans, SBA loans, construction loans, land loans, apartment loans, general commercial loans and residential housing loans, and other business banking services.

Advisors
Janney Montgomery Scott LLC is serving as financial advisor to the bank and Loren P. Hansen, APC is acting as the banks’ legal counsel. PricewaterhouseCoopers Financial Advisory Taiwan Ltd. is serving as financial advisor to TCB and PricewaterhouseCoopers Legal Taiwan is acting as TCB’s legal counsel.

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