Coast Federal Selling Receivables Unit to Imperial Credit(Imperial Credit Industries Inc. Acquires Coastfed Business Credit Corp. from Coast Federal Bank F.S.B.)(Brief Article) (Brief Article)
Crockett, Barton, American Banker
In what was depicted as an effort to sharpen its focus on retail banking, Coast Federal Bank of Los Angeles has agreed to sell an accounts receivable financing unit to Imperial Credit Industries Inc. for $140 million in cash.
The deal, which is expected to close in 30 days, should provide a small boost to the earnings of Coast Savings Financial Inc., the thrift's parent, said James Marks, an analyst with Hancock Institutional Equity Services.
The financing unit, Coastfed Business Credit Corp., has about 22 employees and $300 million in committed lines of credit to California companies. About $140 million of these lines has been tapped.
H. Wayne Snavely, chairman and chief executive of Newport Beach- based Imperial Credit, said that less than a quarter of the acquisition price is for the CoastFed Business itself. The rest is for utilized lines of credit that will be transferred to Imperial Credit's books.
He said Coastfed was very profitable, has operated for 40 years, and has been owned by Coast Federal Bank for 11 years.
Ray Martin, chairman and chief executive of $8.6 billion-asset Coast Federal, said the sale would allow the thrift company to focus more on retail services. …