MetroBank operates 12 branches in Houston and Dallas, and Metro United Bank operates six branches in Los Angeles, San Francisco and San Diego.
MetroCorp had total assets of $1.6bn, total loans of $1.2bn and total deposits of $1.3bn on a consolidated basis, as of 30 June 2013.
East West chairman and CEO Dominic Ng said that the strategic merger will considerably increase the firm’s presence in Houston and allow entry into the Dallas market, while boosting its branch network in California and expanding into San Diego.
MetroCorp president and George Lee will assume the post of senior advisor and chairman of the newly formed Texas Strategic Markets Advisory Council, based on the terms of the agreement.
As per the terms of the definitive agreement, East West will be the surviving entity and will acquire the outstanding shares of MetroCorp for an aggregate purchase price of nearly $273m.
MetroCorp shareholders will receive two thirds of the merger consideration in shares of East West common stock and the remainder in cash.
Unanimously approved by the East West and MetroCorp Boards of Directors, the transaction is likely to conclude during the first quarter of 2014, pending customary closing conditions and regulatory approvals.
Post merger, East West will have 13 branches in Texas, including nine in Houston and four in Dallas, while its will also provide six branches to East West’s California branch network, including one branch in San Diego.
