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The Bank of Hope: The Merger of Wilshire Bank and BBCN Bancorp

In: Financial Analysis of Mergers and Acquisitions

Author

Listed:
  • Eli Amir

    (Tel Aviv University)

  • Marco Ghitti

    (SKEMA Business School)

Abstract

The purpose of this case is to introduce the application of the purchase method in the banking industry. While the elements of consolidation in the banking industry are similar to those in other industries, the terminology and the structure of financial statements are quite different. In this case, we analyze the stock-for-stock merger of Wilshire Bank and BBCN Bancorp in 2015. Both Wilshire and BBCN are commercial banks specializing in providing services to the Korean-American communities. In analyzing the case, we focus primarily on identifying the acquirer and the date of acquisition in a stock transaction, measuring consideration in a stock-for-stock deal, identifying fair value adjustments, and computing goodwill under both the partial and the full fair value methods.

Suggested Citation

  • Eli Amir & Marco Ghitti, 2020. "The Bank of Hope: The Merger of Wilshire Bank and BBCN Bancorp," Springer Books, in: Financial Analysis of Mergers and Acquisitions, chapter 0, pages 203-215, Springer.
  • Handle: RePEc:spr:sprchp:978-3-030-61769-1_11
    DOI: 10.1007/978-3-030-61769-1_11
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