Sign in Subscribe
Commercial banks

BKLA Bancorp Reports Improved Earnings and Notifies End of Cease and Desist Order

Strategic Insights

— 1 min read

Following a $3.5 million capital infusion in March 1995, BKLA Bancorp has reported improved earnings and removed restrictions imposed by the Federal Deposit Insurance Corp. and the Federal Reserve of San Francisco. Chairman M.J. Burford announced that the bank has earned $66,000 in the second quarter, bringing the earnings for the six months ended June 30, 1995, to $4,000. The company plans to merge with World Trade Bank, a Beverly Hills-based bank with $49,422,000 in assets and $46,784,000 in deposits, and will offer a Rights Offering to its existing shareholders.

Key Takeaways:

  • BKLA Bancorp reported improved earnings of $66,000 in the second quarter, bringing the earnings for the six months ended June 30, 1995, to $4,000.
  • The bank has removed the Cease and Desist Order and the agreed-upon restrictions imposed by the Federal Deposit Insurance Corp. and the Federal Reserve of San Francisco, respectively.
  • The company has signed a Definitive Agreement to merge with World Trade Bank, a Beverly Hills-based bank with $49,422,000 in assets and $46,784,000 in deposits.
  • The merger, based on an exchange of stock at book values, is expected to be completed in the first part of the fourth quarter.
  • Bank of Los Angeles, the resultant entity, will offer a Rights Offering to its existing shareholders granting them the right to purchase 2.5 shares of stock for every share of stock they presently own.

Statistics:

  • $66,000: BKLA Bancorp's earnings in the second quarter.
  • $4,000: BKLA Bancorp's earnings for the six months ended June 30, 1995.
  • March 30, 1995: The date BKLA Bancorp infused approximately $3.5 million in capital.
  • $49,422,000: World Trade Bank's assets.
  • $46,784,000: World Trade Bank's deposits.
  • $75: The offering price for the Rights Offering.
  • 2.5: The number of shares that shareholders can purchase for every share they currently own.
  • 3.3 million: The maximum number of shares to be offered in the Rights Offering.
  • 1.1 million: The number of Warrants to be issued as part of the Rights Offering.

Sources:

  • BUSINESS WIRE, "BKLA Bancorp Announces Improved Earnings", July 31, 1995.

Read more