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Bank of Commerce Holdings Sells Mortgage Banking Company
Sept 4 - Patrick J. Moty, president and CEO of Bank of Commerce Holdings (NASDAQ:BOCH), a $927 million bank holding company, and parent company of Redding Bank of Commerce and Roseville Bank of Commerce, has announced the sale of 51 percent ownership position in Bank of Commerce Mortgage.
In May 2009, Bank of Commerce Holdings acquired 51 percent of the capital stock of Simonich Corporation, a residential mortgage banking company headquartered in San Ramon, Calif., with 21 offices in two states and licenses in California, Colorado, Oregon, Nevada and Texas.
Bank of Commerce Holdings has agreed to sell back the 51 percent ownership position to the partners of Simonich Corporation, Scott Simonich and Mario De Tomasi. The agreement represents a return of capital, is generally expected to be cash flow neutral — and puts both parties in the best position for other strategic growth investments. The transaction is expected to close in the third quarter.
The agreement provides for a continued relationship between the two companies on the funding side and puts both parties in the best position to pursue their core competencies.
"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."
"We are happy that Bank of Commerce Holdings recognized the value of our strong mortgage franchise and dedicated employees," said 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."
About Bank of Commerce Holdings
Bank of Commerce Holdings, with administrative offices in Redding, Calif., is a bank holding company that owns Redding Bank of Commerce, Roseville Bank of Commerce and Bank of Commerce Mortgage. The bank is a federally insured California banking corporation and opened on Oct. 22, 1982. BOCH is a NASDAQ Global Market listed stock.