Beverly Hills Bancorp says merger is off
A potential rescuer for struggling First Bank of Beverly Hills has backed away from a deal to buy a majority stake in the Calabasas institution.
First Bank’s parent, Beverly Hills Bancorp, said in a news release late Wednesday that its agreement with Orchard First Source Asset Management, a privately held specialist in buyouts and restructurings, “has been terminated.” Bank officials didn’t return calls seeking elaboration.
After the deal fell apart, the Federal Reserve Bank of San Francisco restricted the payment of stock and bond dividends by the bank and its parent and barred them from taking on any more debt or hiring top executives or directors without regulatory approval. The agreement was posted on the Federal Reserve Board’s website Thursday.
The agreement, dated Wednesday, gave the holding company 10 days to come up with a plan to raise capital that is acceptable to regulators.
Beverly Hills Bancorp shares fell 2 1/2 cents to 7 cents Thursday.
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