Cathay to Buy New Asia Banks in Chicago

Cathay General Bancorp, with U.S. bank branches in California, Massachusetts, New York, Texas and Washington, agreed to buy New Asia Bancorp Inc. for $23.5 million to expand to Chicago.

Los Angeles-based Cathay would pay cash and stock for New Asia Bancorp, owner of New Asia Bank, which has three branches in Chicago. The company expects the deal to close in the fourth quarter.

This would be Cathay’s third acquisition this year, Chief Financial Officer Heng W. Chen said. A “small amount” of New China Bancorp employees would lose their jobs, he said.