United Commercial Bank
| Company type | Subsidiary |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | United Federal Savings and Loan Association, United Savings Bank |
| Founded | 1974 |
| Defunct | November 6, 2009 |
| Fate | Shut down by regulators; operations acquired by East West Bank |
| Headquarters | San Francisco, California , United States |
Area served | San Francisco Bay Area, Sacramento, Stockton, Los Angeles and Orange counties, New York, Boston, Greater Seattle Area, Hong Kong, Atlanta, Houston, Shanghai |
Key people | Thomas S. Wu (CEO, resigned 2009) |
| Products | Banking services |
| Parent | UCBH Holdings |
United Commercial Bank (Chinese: 聯合銀行) was a U.S.-based overseas Chinese financial institution, with its main office located in San Francisco, California. Operating as a subsidiary of UCBH Holdings, the bank originated in 1974 under the name United Federal Savings and Loan Association. It was subsequently renamed United Savings Bank before adopting the United Commercial Bank title in 1998. Its service network extended across multiple regions including the San Francisco Bay Area, Sacramento, Stockton, Los Angeles and Orange counties, New York, Boston, the Greater Seattle Area, Hong Kong, Atlanta, Houston, and Shanghai, along with representative offices in Taipei and Shenzhen. Regulatory authorities shut down the bank on November 6, 2009; at that moment, its asset base totaled $11.2 billion. East West Bank of Pasadena assumed responsibility for all deposits.
Corporate history
On January 11, 2007, UCBH declared its intention to acquire The Chinese American Bank, which operated branches in Manhattan and Flushing, New York, with the transaction expected to finalize by the second quarter of 2007. Later that year, on March 27, UCBH completed the purchase of Shanghai’s Business Development Bank for $205 million in cash. This strategic acquisition provided UCB with a valuable banking license within China—enabling operational growth—with full-service branches established in Shanghai, Hong Kong, and Shantou.
The California Department of Financial Institutions ordered the closure of United Commercial Bank on November 6, 2009, appointing the FDIC as receiver. Subsequently, its operations were integrated into East West Bank. In 2008, UCB had obtained $299 million from the Troubled Asset Relief Program (TARP), which ultimately resulted in a loss for the U.S. Treasury. The FDIC projected losses totaling $1.4 billion on nearly $7.7 billion worth of assets acquired by East West.
Before its shutdown, UCB became embroiled in a financial controversy involving intentional understatement of losses by certain executives to conceal worsening financial conditions. This scandal prompted the resignations of CEO Thomas S. Wu and the Chief Operating Officer in September 2009.
UCBH had been a competitor alongside East West and Cathay General Bancorp within the Chinese American banking sector. East West’s acquisition of $10.2 billion out of UCB’s $11.2 billion asset portfolio resulted in a combined institution boasting close to $23 billion in assets—surpassing City National Bank’s $18.4 billion and significantly exceeding Cathay’s $11.39 billion. The deal was regarded as highly beneficial; East West’s stock price surged by as much as 57% following the announcement.
Prior to the FDIC’s takeover, Minsheng Banking Corp attempted to purchase UCB but encountered delays or denial from the Federal Reserve Board. Had this acquisition succeeded, it might have prevented approximately $1.7 billion in losses borne by TARP and FDIC funds.
UCBH acquisitions
- Golden Coin Savings & Loan Association (1992)
- Asian American Bank & Trust Company (2005)
- Summit National Bank (2006)
- The Chinese American Bank (2007)
- Business Development Bank Ltd. (2007)
See also
- Bank failure
- List of largest U.S. bank failures
- Federal Deposit Insurance Corporation
- 2008 financial crisis
- 2008–2009 bank failures in the United States
- List of banks acquired or bankrupted in the United States during the 2008 financial crisis