MICHIGAN NATIONAL'S BEVERLY HILLS BUSINESS BANK PURCHASES MORTGAGE WAREHOUSE LOANS FROM FIRST COLLATERAL SERVICES, INC.
MICHIGAN NATIONAL'S BEVERLY HILLS BUSINESS BANK
PURCHASES MORTGAGE WAREHOUSE LOANS FROM FIRST COLLATERAL SERVICES, INC.
FARMINGTON HILLS, Mich., April 13 /PRNewswire/ -- Beverly Hills Business Bank, a wholly owned subsidiary of Michigan National Corporation (NASDAQ-NMS: MNCO), today announced the purchase of approximately $200 million of mortgage warehouse loans from First Collateral Services, Inc., a San Francisco-based subsidiary of HonFed Bank, a Federal Savings Bank headquartered in Hawaii. The transaction encompasses the majority book of business of First Collateral's operations, and enables Beverly Hills Business Bank to continue to prudently expand its lending activities on the West Coast. It is planned that the mortgage warehouse lending activities will be part of BH Mortgage Corporation, a subsidiary of Beverly Hills Business Bank, and will continue doing business as First Collateral. "Beverly Hills Business Bank has identified the mortgage banking industry as an attractive market requiring reliable and high-quality financial services," said Ed Sondker, president of Beverly Hills Business Bank. "Acquiring assets from First Collateral reaffirms our commitment to the mortgage banking industry." Sondker will serve as chairman of BH Mortgage, with Robert Hodgson serving as president and chief executive officer. Hodgson is an officer of Beverly Hills Business Bank. Current First Collateral senior management will assume the following positions: Willem Ridder will be vice chairman; and Lyndon Merkle will serve as senior vice president and chief financial officer. "This transaction presents us with the opportunity to grow a targeted business niche and will partially offset the scheduled liquidation of approximately $375 million of covered assets at Beverly Hills," said Michigan National Corporation chairman, Robert J. Mylod. The covered assets represent problem loans assumed by Michigan National as part of its 1988 rescue of the former Beverly Hills Savings Bank, now Beverly Hills Business Bank. It is projected that these assets will be liquidated in stages during 1992 without meaningful negative impact on Beverly Hills earnings. "The Michigan National management team is already intimately familiar with the mortgage warehouse lending business. We are delighted to welcome Bill Ridder and his skilled colleagues to our team. This transaction presents us with excellent additional opportunities, not only in California but also here in Michigan and, hopefully, in the near term at our Texas affiliates," added Mylod. Michigan National owns and operates two banks in Texas, Lockwood National Bank in Houston and First State Bank and Trust in Port Lavaca. "This transaction will also serve to continue our efforts to vertically integrate our business lines with our mortgage subsidiary, Independence One Mortgage Corporation," commented Mylod. Independence One, one of the 25 largest mortgage companies in the nation as measured by its $14.3 billion servicing portfolio, has offices in 10 states, including California. The California offices are located in San Diego, Los Angeles and, conveniently, in Walnut Creek, near where First Collateral is headquartered. Michigan National Corporation is a diversified financial services corporation with total assets of $10.6 billion. It is a bank holding company and a savings and loan holding company. Michigan National Corporation's principal subsidiary, Michigan National Bank, has approximately 190 branches throughout Michigan and operates the state's largest automated teller machine network. -0- 4/13/92 /CONTACT: Ariadne Magoulias, 313-473-3428, or Vernon Patterson, 313-473-3076, both of Michigan National Corporation/ (MNCO) CO: Beverly Hills Business Bank; Michigan National Corporation; First Collateral Services, Inc. ST: Michigan, California IN: FIN SU:
JG-KK -- DE019 -- 7946 04/13/92 17:00 EDT
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|Date:||Apr 13, 1992|
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