Magazine article American Banker

Deal for Commercial Unit Fuels Calif. Thrift's Push in U.S. Consumer Finance

Magazine article American Banker

Deal for Commercial Unit Fuels Calif. Thrift's Push in U.S. Consumer Finance

Article excerpt

A San Francisco-area thrift is plowing ahead with plans to build a national consumer finance business.

Bay View Capital Corp., San Mateo,has agreed to buy Exxe Data Corp. and its commercial finance subsidiary, Concord Growth Corp., for as much as $53.8 million in cash.

The price consists of a $19.8 million initial closing payment and future allotments to Exxe shareholders of up to $34 million, depending on Concord's future performance. The closing price is about 9.4 times what Bay View estimates Concord could earn during the first full year after the acquisition.

The purchase would give $3.3 billion-asset Bay View a nationwide commercial finance operation, adding to its existing banking, consumer credit, and auto financing services. Bay View expects to add about $65 million of assets, including $50 million in off-balance-sheet financing that will be returned to the books.

Officials predict that 20% of Bay View's consolidated profits for the first year after the purchase will come from consumer and commercial financing.

"This really gives us the third leg of the stool," said Bay View president and chief executive Edward H. Sondker. "We believe this acquisition is very consistent with our mission at the holding company."

Bay View stock traded up to $58 last Thursday, before dropping back to close at $52.88. It was trading at $52 as of Monday noon.

"What a difference a management team makes," said Charlotte Chamberlain, analyst at Wedbush Morgan Securities in Los Angeles. …

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