In California, a financial institution is selling the majority of its mortgage business to facilitate a return of capital agreement in conjunction with a previous acquisition deal. Redding-based ""Bank of Commerce Holdings"":http://www.bankofcommerceholdings.com/ has announced that 51 percent of ""Bank of Commerce Mortgage"":http://www.bankofcommercemortgage.com/ has been sold back to the partners of Simonich Corporation, following a 2009 transaction between the two entities.[IMAGE]
During May 2009, Simonich, a residential mortgage banking corporation, sold 51 percent of its capital stock to Bank of Commerce Holdings. Through the new deal, Simonich's partners, Scott Simonich and Mario De Tomasi, will gain a 51 percent ownership position in Bank of Commerce Mortgage.[COLUMN_BREAK]
The agreement between the two companies is projected to be ""cash flow neutral,"" and in an official statement, Bank of Commerce Holdings noted that the sale ""puts both parties in the best position for other strategic growth investments."" The holding company went on to add that the deal will close in the third-quarter of 2012.
""We are pleased to announce this sale, as it further aligns our strategic focus on core banking, enables us to redeploy capital and to continue our relationship with Simonich Corporation as a lender,"" said Patrick J. Moty, president and CEO of Bank of Commerce Holdings.
""We will continue to look for favorable opportunities for expansion, including acquisitions, as part of our overall growth strategy,"" added Moty.
""We are happy that Bank of Commerce Holdings recognized the value of our strong mortgage franchise and dedicated employees,"" stated Scott Simonich, president and CEO Bank of Commerce Mortgage.
""This agreement reaffirms our commitment to focus on our strategy of building our mortgage banking franchise significantly in multiple locations, and to continue our valuable lending relationship with Redding Bank of Commerce,"" concluded Simonich.