Business Bank of California Shareholders Approve Formation of Holding Company.SAN BERNARDINO San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. , Calif.--(BUSINESS WIRE)--Nov. 18, 1999-- Shareholders of Business Bank of California The Bank of California was founded in San Francisco, California on July 5, 1864 by William Chapman Ralston. It was the first commercial bank in the Western United States, the second-richest bank in the nation, and considered instrumental in developing the American Old West. (BBNK.OB.) approved a plan of reorganization by which the bank will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of a newly formed holding company, Business Bancorp. Business Bancorp is a newly formed California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). corporation organized, at the direction of the bank's board of directors, for the purpose of acquiring ownership of the bank and thereby becoming a bank holding company. The holding company will acquire all of the outstanding shares of the bank at an even rate of exchange. The reorganizational plan will become effective in December 1999 following receipt of all required regulatory approvals and observance of the specified waiting period. Alan J. Lane, president and chief executive officer of the bank, issued a statement regarding the board's call for approval of a reorganizational plan, "The board of directors of the bank believes that the formation of a bank holding company will result in an entity which has a broader range of alternatives with respect to both access to and utilization of capital, and enhance expansion opportunities." Increased expansion opportunity is a primary factor in the establishment of the holding company structure. Inherent in the expanded capabilities represented by a holding company structure is the flexibility of acquiring additional banking franchises which would remain autonomous in operation and retain the name of the acquired bank where that name represents franchise value. Financial advantages represented by the formation of a holding company include greater flexibility in the area of repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of securities and financing alternatives that would benefit subsidiaries of the organization. "Each of the advantages inherent in the holding company structure represent potential value to our shareholders and expanded franchise value for Business Bank of California," stated Lane. "We're extremely pleased that that value was recognized by shareholders of Business Bank of California who, by a substantial majority vote, approved the formation of the new holding company, Business Bancorp." Business Bank of California has served the Inland Empire In·land Empire A region of the northwest United States between the Cascade Range and the Rocky Mountains, comprising eastern Washington, eastern Oregon, northern Idaho, and western Montana. Farming, lumbering, and mining are important to the area. since 1984 and operates branches in the cities of San Bernardino, Corona Corona, city, United States Corona (kərō`nə), city (1990 pop. 76,095), Riverside co., S Calif.; inc. 1896. The city developed as a primary citrus fruit producer and shipping center. There is also light manufacturing. , Hesperia, Phelan, Redlands and Ontario. The bank's primary focus is on meeting the financial needs of small to mid-size clients in the professional and business communities it serves. In addition, the bank is firmly committed to providing a wide range of services designed to meet the personal banking requirements of individuals in the communities it serves. Visit Business Bank of California on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.businessbank.com. Business Bank of California stock information is available utilizing the symbol (BBNK.OB). |
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