In an effort to bolster its dwindling capital base, BSD Bancorp agreed to sell its 51% stake in Bank of La Costa for $1.3 million, or $10.50 a share, to an investor group that includes Lowell Hallock, the bank's chairman.
The group, Financial Consortium of America, said it will launch a tender offer for all remaining shares of the bank at the same price. BSD said the transaction could be completed in 90 to 120 days. Others in the investment group are Salvatore P. Osio and Robert Kleffel of San Dieguito Capital, Solana Beach attorney Bruce Spear and about 12 other North County business people. Hallock was president of Bank of San Diego, another BSD subsidiary, but resigned in November after the bank said it had $4 million in problem loans and would have about a $1-million for the year.
Raising capital is a priority at BSD this year, according to Chief Operating Officer Lynn Caswell. Those efforts will include a stock offering worth $1.5 million to $3 million, tentatively scheduled for April or May.