LOS ANGELES, May 26, 2021 /PRNewswire/ -- Cathay General
Bancorp (Nasdaq: CATY) announced that its subsidiary bank, Cathay
Bank, has entered into a purchase and assumption agreement with
HSBC Bank USA, National
Association ("HSBC"), to purchase 10 HSBC retail branches in
California and additional loans
and deposits associated with HSBC's West Coast mass retail market
consumer banking business and retail business banking
business.
Cathay General Bancorp Executive Chairman Dunson K. Cheng stated, "This transaction will
broaden the reach of our Northern and Southern California branch network. As
we continue to grow and expand, the ability to provide our clients
added ease in accessing banking services is a significant step in
our journey."
Chang M. Liu, President and Chief
Executive Officer of Cathay General Bancorp, said, "We are excited
to continue our long history of banking in the California community. The transaction
complements our footprint and strengthens our ability to serve our
communities and clients well and long into the future."
Under the terms of the purchase and assumption agreement, Cathay
Bank will acquire 10 HSBC branches and purchase and assume
additional deposit liabilities and assets, including residential
mortgage loans, retail business banking loans and personal loans
associated with HSBC's West Coast mass retail market consumer
banking business and retail business banking business. Cathay
Bank is not acquiring or assuming loans or assets associated with
HSBC's brokerage business, its private banking and high net worth
businesses or its non-retail business banking business. The
transaction is expected to be completed during the first quarter of
2022, subject to regulatory approval. As of March 31, 2021, the total acquired loans were
approximately $0.8 billion and total
deposit were approximately $1
billion. The financial terms of the agreement were not
disclosed. The transaction is expected to be approximately 2.0%
accretive to Cathay General Bancorp's GAAP 2022 earnings per share,
on a run-rate basis, excluding any one-time transaction costs and
restructuring expenses.
Wachtell, Lipton Rosen & Katz
is serving as legal counsel to Cathay Bank.
ABOUT CATHAY GENERAL BANCORP
Cathay General Bancorp is the holding company for Cathay Bank, a
California state-chartered
bank. Cathay General Bancorp's website is found at
www.cathaygeneralbancorp.com. Founded in 1962, Cathay Bank offers a
wide range of financial services. Cathay Bank currently operates 38
branches in California, 10
branches in New York State, four
in Washington State, three in the
Chicago, two in Texas, one in Maryland, one in Massachusetts, one in Nevada, one in New
Jersey, one in Hong Kong,
and a representative office in Beijing, Shanghai and Taipei. Cathay Bank's website is found at
www.cathaybank.com.
FORWARD-LOOKING STATEMENTS
Statements made in this press release, other than statements of
historical fact, are forward looking statements within the meaning
of the applicable provisions of the Private Securities Litigation
Reform Act of 1995 regarding management's beliefs, projections, and
assumptions concerning future results and events. These
forward-looking statements may include, but are not limited to,
such words as "aims," "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "hopes," "intends," "may,"
"plans," "projects," "predicts," "potential," "possible,"
"optimistic," "seeks," "shall," "should," "will," and variations of
these words and similar expressions. Forward-looking statements are
based on estimates, beliefs, projections, and assumptions of
management and are not guarantees of future performance. These
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
projections. Such risks and uncertainties and other factors
include, but are not limited to, Cathay General Bancorp's ability
to realize anticipated cost savings, economies of scale and/or
revenue and business franchise enhancements from the proposed
transaction within expected time frames or at all; whether
governmental approvals for the proposed transaction will be
obtained within expected time frames or at all; whether the other
conditions to the closing of the proposed transaction are
satisfied; higher than anticipated transaction costs; deposit
attrition, operating costs, customer loss and business disruption
following the proposed transaction, including difficulties in
maintaining relationships with employees and customers, may be
greater than expected; local, regional, national and international
economic and market conditions and events and the impact they may
have on customers, assets, and liabilities of Cathay General
Bancorp and HSBC; Cathay General Bancorp's success at managing the
risks involved in the foregoing items and all other factors set
forth in Cathay General Bancorp's filings with the Securities and
Exchange Commission including its Annual Report on Form 10-K for
the year ended December 31, 2020, and
particularly the discussion of risk factors within that document.
Actual results in any future period may also vary from any past
results discussed in this press release.
Given these risks and uncertainties, readers are cautioned not
to place undue reliance on any forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is
made, and, except as required by law, Cathay General Bancorp
undertakes no obligation to update or review any forward-looking
statement to reflect circumstances, developments or events
occurring after the date on which the statement is made or to
reflect the occurrence of unanticipated events.
Contact:
|
Heng W.
Chen
|
|
(626)
279-3652
|
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SOURCE Cathay Bank