entered into a merger agreement with investor Sai Yung Chung and hiswholly owned firm, EIB Capital Corp., whereby the Los Angeles-based bank willmerge with EIB Capital in an all-cash transaction valued at about $31.9 million.
Underthe deal's terms, Eastern International Bank shareholders will be entitled toreceive approximately $60.23, subject to downward adjustment based on the performanceof the bank, in exchange for each share of Eastern International Bank commonstock, according to a March 4 press release.
AtDec. 31, 2015, Eastern International Bank's consolidated assets wereapproximately $119.5 million. The bank had $18.0 million in capital, $78.4million in loans and two retail locations.
The deal value, according to S&P Global MarketIntelligence data, is 177.3% of book and tangible book and 57.2x last-12-monthsearnings, on an aggregate basis. It is also 31.52% of deposits and 26.70% ofassets. The tangible book premium-to-core deposits ratio is 19.80%.
For comparison, S&P Global Market Intelligencevaluations for bank and thrift targets in the West region between March 4,2015, and March 4, 2016, averaged 137.13% of book and 140.11% of tangible bookand had a median of 24.08x last-12-months earnings, on an aggregate basis.
Eastern International Bank operates two branches in LosAngeles County, ranked No. 78 with a 0.03% share of approximately $340 billionin total market deposits.
Themerger is set to close in the fall of 2016, subject to the approval of EasternInternational Bank's regulators and shareholders. After the merger, EasternInternational Bank will be wholly owned by Chung.