Beverly Hills Bancorp, Orchard First Source Announce Merger

Posted by Orb Staff on March 04, 2009 No Comments
Categories : Residential Mortgage

Beverly Hills Bancorp Inc. (BHBC) and Orchard First Source Asset Management LLC (OFS) say they will sign a definitive agreement to merge OFS' wholly owned subsidiary lender, OFS Funding LLC, into First Bank of Beverly Hills (FBBH). The merger would result in substantial additional capital for FBBH and cause it to be ‘well capitalized’ under applicable regulations, the companies say.

The merger represents the first step in a broader recapitalization and growth plan for FBBH. Following the merger, FBBH will convert from a wholesale bank into a more traditional bank, including a new emphasis on increasing core deposits.

The asset portfolio will shift from a focus on real estate loans and securities to a more conventional, diversified loan portfolio of both mortgages and loans to non-real-estate businesses. Additionally, the FBBH will establish a Small Business Administration lending program directed to the Southern California business community.

The transaction, which is expected to close in the second or third quarter of 2009, is subject to various conditions, including regulatory approvals, completion of mutual due diligence and the approval of BHBC stockholders.

SOURCES: Beverly Hills Bancorp, Orchard First Source

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