Harrington West Financial Group acquires Los Padres Savings Bank and forms strategic alliance.SOLVANG, Calif.--(BUSINESS WIRE)--Sept. 20, 1995--Harrington West Financial Group Inc. and Los Padres Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. FSB (FrontSide Bus) See system bus. FSB - front side bus jointly announced today an agreement by which Harrington West will acquire Los Padres and form a strategic alliance. The alliance will generate capital for the expansion of Los Padres business activities and provide liquidity to current shareholders. Under the terms of the agreement, Los Padres shareholders will receive $17.50 in cash for each share of Los Padres stock owned. Harrington West is a privately held corporation Noun 1. privately held corporation - a corporation owned by a few people; shares have no public market close corporation, closed corporation, private corporation newly formed for the purpose of effecting the acquisition and supporting the further business growth of Los Padres, which will be its sole subsidiary. Smith Breeden Associates Inc. will advise Harrington investors, coordinate Harrington West capital-raising efforts and provide ongoing strategic planning, investment and asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. advice to both Harrington West and Los Padres. Frederick J. Harrison and William D. Ross will retain their respective positions as chairman and chief executive officer of Los Padres. Craig J. Cerny, a managing principal of Smith Breeden Associates, will serve as chairman and chief executive officer of Harrington West Financial Group Inc. All other Los Padres managers, including William W. Phillips, chief financial officer, will retain their present positions. According to Harrison, "the strategic alliance will enable Los Padres Savings Bank to fund expansion of its operations and provide additional expertise to allow the bank to compete more effectively in the next century." Adds Cerny, "this transaction allows Los Padres to retain its community identity, personalized customer service and local decision-making while partnering with a company that provides considerable financial management expertise and access to additional capital." The transaction is expected to close by March 31, 1996 and is subject to the approval of Los Padres shareholders and federal regulatory agencies. Los Padres Savings Bank, founded in 1983, serves the Central Coast of California The Central Coast is an area of California, United States, roughly spanning the area between the Monterey Bay and Point Conception. It extends through Santa Cruz County, San Benito County, Monterey County, San Luis Obispo County, and Santa Barbara County. with offices in Solvang, Santa Maria, Pismo Beach and Atascadero. Both Los Padres and Harrington West will be headquartered in the Solvang/Santa Barbara area. Smith Breeden Associates Inc. is an investment advisory and bank and thrift consulting firm whose clients include two Federal Home Loan Banks Federal Home Loan Banks The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks. , many prominent financial institutions, and several Fortune 100 Companies. Founded in 1982, Smith Breeden pioneered market value analysis and risk management for financial institutions as well as prepayment analysis for mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . With offices in Chapel Hill, North Carolina Chapel Hill is a town in North Carolina and the home of the University of North Carolina at Chapel Hill (UNC-CH), the oldest state-supported university in the United States. As of the 2000 census, it had a population of 48,715. As of 2004 its estimated population was 52,440. ; Overland Park, Kansas Overland Park is the second most populous city in the U.S. state of Kansas. It is located in Johnson County, a satellite city of Kansas City, and is near Olathe, Lenexa, Prairie Village and Leawood. In 2006, the estimated population is 167,500. ; Dallas, Texas; and Boulder, Colorado, the firm currently employs more than 60 people and provides investment advisory services for over $19 billion of customer assets. CONTACT: Los Padres Bank William D. Ross, 805/688-6644 or Harrington West Financial Group Craig J. Cerny, 913/451-1566 or Thompson Becker International Tad Gillespie, 508/698-0448 |
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