UCBH Holdings, Inc. (“UCBH”) is a Delaware corporation incorporated in 1998, and registered with the Board of Governors of the Federal Reserve System as a bank holding company. UCBH conducts its principal business through its wholly owned banking subsidiary, United Commercial Bank (“UCB”; UCBH, UCB and UCB’s wholly owned subsidiaries are collectively referred to as the “Company”, “we”, “us” or “our”), which makes up substantially all of our consolidated assets and revenues. UCB is a California state-chartered commercial bank.
UCB was founded as United Federal Savings and Loan Association in 1974 to serve the financial needs of the San Francisco Chinese community. As the Chinese population grew significantly and expanded into new communities throughout California, we became United Savings Bank, F.S.B. to provide statewide banking services. In 1998, reflecting a rapidly growing focus on our commercial banking capabilities, we converted our charter to become UCB, a commercial bank. The Company went public on November 5, 1998, and currently trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “UCBH”.
During 2006, the Company completed its acquisition of Summit Bank Corporation (“Summit”), headquartered in Atlanta, Georgia. As of the acquisition date, Summit’s total assets were $887.9 million and total deposits were $547.6 million. The acquisition included five branches/offices in Atlanta, Georgia, one branch in Houston, Texas, two branches/offices in California and a representative office in Shanghai, China. Additionally during 2006, UCB established a wholly owned subsidiary, UCB Asset Management, Inc. (“UCBAM”), which was created to provide professional investment management services to high-net-worth clients.
In 2007, the Company completed two acquisitions; CAB Holding, LLC (“CAB”), the holding company of The Chinese American Bank, a New York state-chartered bank, and Business Development Bank Ltd. (“BDB”), now United Commercial Bank (China) Limited (“UCB China Ltd”), a wholly foreign owned enterprise established and existing under the laws of the People’s Republic of China. As of the acquisition date, CAB’s total assets were $357.2 million and total deposits were $312.4 million. The acquisition included three branches in the New York area. As of the acquisition date, UCB China Ltd’s total assets were $338.7 million and total deposits were $30.5 million. The acquisition included branches in Shanghai and Shantou, China and representative offices in Beijing and Guangzhou, China. UCB infused $65 million in capital into UCB China Ltd at the closing of the acquisition.
We intend to continue to expand within our existing markets and move into new markets by developing new product offerings, opening new branches and/or acquiring financial institutions in existing markets, and entering into and/or acquiring financial institutions in other markets with high concentrations of Asians in keeping with our capital requirements and management abilities.
We have been expanding to develop a nationwide presence to provide services to companies doing business in China and to enhance our local presence in Asian communities. These areas include the San Francisco Bay Area and the Sacramento/Stockton, Los Angeles, Atlanta, Boston, Houston, New York and Seattle metropolitan areas. We currently have fifty-one branches/offices in the State of California, five in the Atlanta metropolitan area, three in the Boston metropolitan area, a branch in Houston, nine in the New York metropolitan area, two in the Seattle metropolitan area and branches in Hong Kong, Shanghai and Shantou, China. We also have representative offices in Shenzhen, Beijing, and Guangzhou, China and Taipei, Taiwan. Our Northern and Southern California locations encompass twenty-nine and twenty-two branches/offices, respectively.
We have tailored our products and services to meet the financial needs of the growing Asian communities in our market areas. We believe that this approach, together with the relationships of our management and the Company’s Board of Directors with the Asian communities, provides us with an advantage in competing for customers in these areas.
Current Banking Services
Through our branch network, we provide a wide range of personal and commercial banking services to small- and medium-sized businesses, business executives, professionals and other individuals. We offer multilingual services to all of our customers in English, Cantonese and Mandarin.
We offer the following deposit products:
Business and personal checking, savings and money market accounts;
Time deposits (certificates of deposit); and
Individual Retirement Accounts (“IRAs”).
We offer a full complement of loan products, including the following types of loans:
Commercial real estate loans;
Commercial, accounts receivable and inventory loans to small- and medium-sized businesses with annual revenues generally ranging from $500,000 to $20.0 million;
construction loans, primarily to small- and medium-sized developers for construction of single-family homes, multifamily and commercial properties;
Short-term trade finance facilities for terms of less than one year to United States importers, exporters and manufacturers;
Loans guaranteed by the United States Small Business Administration (“SBA”);
Multifamily real estate loans;
Residential mortgage loans; and
Home equity lines of credit.
We also provide a wide range of specialized services, including merchant bankcard services, cash management services, private client services, brokerage investment products and services, business credit card services, foreign exchange services, and online banking services. In addition, we provide trade finance facilities for customers involved in the import and/or export of goods principally between Asia and the United States.
UCB maintains an Internet banking website at www.ibankUNITED.com. This website, which is available in both English and Chinese character versions, provides information about UCB as well as easy access to business and personal online banking services, a web-based trade finance management system and an online information services for home loans. We believe our website serves as a strong platform to promote UCB, to cross-sell the products and services that UCB offers and to deliver advanced online banking services.
Subsidiaries of the Company and UCB
UCBH has eleven wholly owned subsidiaries, including UCB. Other than UCB, the subsidiaries are special purpose trusts that were either formed by UCBH to issue guaranteed preferred beneficial interests in UCBH’s junior subordinated debentures or acquired by UCBH in the Summit acquisition.
UCB has ten wholly owned subsidiaries. United Commercial Bank (China) Limited was acquired during the fourth quarter of 2007. United Commercial Bank (China) Limited is a foreign owned bank incorporated in China whose primary business efforts are on the small and medium size enterprise corporate sector in China, which include private companies and businesses with annual revenues in the $7 million to $70 million revenue range. California Canton International Bank (Cayman) Ltd. which was acquired as part of the BCC transaction in 2002 provides banking services and has deposits and assets consisting of cash and investment securities. UCBIS is a registered broker-dealer with the United States Securities and Exchange Commission and is a member of the National Association of Securities Dealers, Inc. UCBAM provides professional investment management services to high-net-worth clients. Newston Investments, Inc. owns the office building that houses UCB’s branch in Houston, Texas. Of the remaining four subsidiaries of UCB, two are inactive, a third, U.F. Service Corporation acts as a trustee under deeds of trust securing promissory notes held by UCB and a fourth, United Commercial Mortgage Securities, LLC is a Delaware limited liability company organized for the purpose of serving as a private secondary mortgage market conduit.