The nation's two largest Korean American banks had announced on Monday its merge.
BBCN Bancorp and Wilshire Bancorp executives had announced to merge, with $12.3 billion in assets to become the third-largest in Southern California and sixth-largest independent bank in the state, Los Angeles Times reported.
BBCN chairman and chief executive Kevin Kim said that the merge of the two Korean American banks would create their position as the "premier Korean American Bank." The combined banks would have branches in states and areas with a sizable Korean American population, the report added. These states include New York, Chicago, Seattle and Atlanta.
BBCN's Kim would remain as the chief executive officer. On the other hand, Wilshire's Steven Koh would be the chairman, the report added.
This combination is to cut costs and increase profits when merged. Moreover, the merging of the two Korean American banks is expected to save $42 million annually in costs.
It can be noted that BBCN is to buy Wilshire in $1 billion deal, Reuters reported. BBCN will buy its smaller rival at about $1 billion, tax-free and an all-stock valued.
The decision of BBCN to buy Wilshire was agreed on two weeks after Hanmi Financial Corp's proposal of merging with the company at about $1.6 billion, the report added.
59 percent will be owned by the BBCN shareholders. Moreover, 41 percent will be owned by the company, the report added.