Taiwanese lender Taichung Commercial Bank (TCB) has signed a definitive agreement to acquire American Continental Bancorp in a deal valued at $82.1m.

Through the acquisition of American Continental Bancorp, which owns California-based American Continental Bank, TCB hopes to expand its global operations.

According to Taipei Times’ report, TCB plans to create a subsidiary, subject to regulatory approval, to buy the US lender via a reverse triangular merger.

The new unit will allow TCB to control a 100% stake in American Continental Bancorp, the publication said.

As of 30 June 2022, American Continental Bank had $324.4m in total assets, $245.7m in gross loans and $271.3m in deposits.

With five branches, the lender caters primarily to the Chinese-American communities in California and surrounding communities.

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The lender offers loans with a focus on small business, commercial real estate, construction, and residential mortgages.

TCB president David Jia said: “We are very pleased to announce this transaction with American Continental Bank, which enables us to expand the TCB franchise to the attractive Los Angeles, Washington, and Texas markets and serve its large community of Asian-Americans.

“We believe that this transaction will position us well for continued growth of the TCB franchise and the creation of value for our shareholders in the years ahead.”

With around $26.240bn in assets as of 30 June 2022, TCB aims to open new branches in the US.

American Continental Bancorp president and CEO Terry Lou said: “We are very excited to be joining the TCB family. TCB’s focus on high engagement client service, disciplined underwriting standards, strong asset quality and commitment to employee development aligns well with American Continental’s culture and provides me great confidence for the future of the combined organisation.”

The acquisition is expected to close in the first quarter of 2023.