Both the banks have inked a definitive agreement to combine in a strategic merger of equals.
As of 30 September 2015, BBCN Bancorp is said to be the largest Korean-American bank in the country with $7.6bn in assets.
BBCN operates 50 branches in California, New York, New Jersey, Illinois, Washington and Virginia; eight loan production offices in Seattle, Denver, Dallas, Atlanta, Northern California, Annandale, Virginia, Portland, Oregon and Fremont, California; and a representative office in Seoul, Korea.
Headquartered in Los Angeles, Wilshire Bancorp is the parent company of Wilshire Bank, which operates 35 branch offices in California, Texas, Alabama, Georgia, New Jersey, and New York.
Wilshire Bancorp also operates six loan production offices of which four are utilized primarily for the origination of loans under the Small Business Administration lending program, and two that are utilized primarily for the origination of residential mortgage loans located in California.
Upon closing, the combined company will have $12.3bn in total assets, $9.6bn in gross loans, and $10bn in deposits.
BBCN will own 59% stake in the combined entity and the remaining 41% will be owned by Wilshire.
Wilshire board chairman Steven S. Koh said: "This historic merger of equals combines the top two commercial lenders in the Korean-American banking space and creates for the first time a super regional Korean-American franchise that will also be the 7th largest publicly traded bank headquartered in California.
"The combination of BBCN and Wilshire will create an unrivaled organization with the only national platform providing full banking services in all of the major geographic markets in the United States with sizeable Korean-American communities."
Subject to regulatory approvals, approvals of the shareholders of both BBCN and Wilshire, and other customary closing conditions, the merger is expected to be completed in mid-2016.
Earlier in November this year, Hanmi Financial has proposed to combine with BBCN Bancorp in a $1.6bn deal.
Image: BBCN Bancorp and Wilshire Bancorp agree to merge in a $1bn deal. Photo: courtesy of adamr / FreeDigitalPhotos.net.
