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Popular Expands In California

Acquires Quaker City Bancorp for $367 million


March 25, 2004
Copyright © 2004 CARIBBEAN BUSINESS. All Rights Reserved.

In one of its largest transactions ever, Banco Popular parent company Popular Inc. will purchase Whittier, Calif.-based Quaker City Bancorp for $367 million.

Under the merger agreement, Popular will purchase all of Quaker City’s 6.2 million common shares at a price of $55 each. Consolidation of the two entities will yield assets of about $2.4 billion in Southern California. The transaction should take place in the third quarter of this year, pending approval by the boards and regulatory agencies.

"This acquisition reinforces our commitment to serving the needs of individuals and small businesses in the U.S., and also expands our banking presence in the California market," said Richard Carrion, Popular’s chairman, president & CEO.

Once the transaction is finalized, Quaker City will be integrated into Banco Popular North America (BPNA). Quaker City’s 27 branches will add to Popular’s existing branch network, increasing the number of outlets to 44. Sixteen of the newly acquired branches are within Wal-Mart stores. Thus, the acquisition of Quaker City will allow BPNA to access customers through standalone and in-store branches.

"Quaker City customers will now enjoy an increase in banking and cash-management products. They will also get Banco Popular’s expertise in retail banking and residential lending," said BPNA President Roberto Herencia.

As of Dec. 31, 2003, Quaker City had total assets of $1.8 billion and total deposits of $1.1 billion. Popular’s $55-a-share purchase offer represents a premium of 18% over Quaker City’s closing price of $46.44 last Thursday.

Popular has assets of $36 billion and operates two main subsidiaries: Banco Popular de Puerto Rico and BPNA, the latter of which maintains 100 branches in six states. As of Dec. 31, 2003, BPNA had $6.1 billion in assets and $5.1 billion in deposits.

This Caribbean Business article appears courtesy of Casiano Communications.
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