Mergers & Acquisitions

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Deal Overview

Buyer:
Nara Bancorp, Inc.
Actual Acquirer:
Nara Bancorp, Inc.
Target:
Center Financial Corporation
Deal Type:
Bank & Thrift Company
Agreement Date:
12/9/2010
Announcement Date:
12/9/2010
Announced Deal Value ($ M):
286.31
Status:
Completed
Completion Date:
11/30/2011
Announced Deal Value Per Share ($ )
7.16

Consideration Breakout
Common Stock ($M) 285.6
Common Stock Issued 31,160,880

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 131.2 118.1
Price / Tangible Book (%) 131.5 118.3
Price / Earnings (x) NM 12.8
Price / Deposits (%) 15.97 15.90
Price / Assets (%) 13.42 13.46
Tangible Book Premium/ Deposits (%) 5.46 3.22
Deal Terms
Description of Consideration

Nara Bancorp Inc. exchanged 0.7805 share of its common stock for each share of Center Financial Corp. Nara Bancorp shareholders will now own 55% of the combined company with Center Financial shareholders holding the remaining 45%. Nara Bancorp Inc. also assumed $18 million obligations of Center Financial Corp. with respect to its issued and outstanding junior subordinated debt securities. The combined company will operate under the new name of BBCN. The name of the holding company will be BBCN Bancorp, Inc. and the name of the bank will be BBCN Bank.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? Yes
Geographic Expansion? Market Expansion
Goodwill Generated ($ 000) 87,400
Estimated Cost Savings (%) NA
Estimated Cost Savings ($ 000) NA
Est. Restructuring Charges ($ 000) 10,700
Maximum Termination Fee ($ 000) 10,000
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 0.780500
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 4,100
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Keefe Bruyette & Woods Inc.
Seller Yes D.A. Davidson & Co.
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Mayer Brown LLP
Seller Yes Morrison & Foerster LLP
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