Eldorado Bancshares and American Sterling Bank Announce Agreement in Principle for Wholesale Mortgage Division Acquisition

Strategic Insights -

Eldorado Bancshares, Inc., a banking company based in California, and American Sterling Bank have reached an agreement in principle for the wholesale mortgage lending division of American Sterling Bank to acquire the operations of Commerce Security Mortgage, Eldorado Bancshares's wholesale mortgage operation. The transaction is subject to approval by the Boards of Directors of both companies. The terms of the deal have not been disclosed. As a result of this agreement, Eldorado Bancshares will discontinue its wholesale mortgage unit, and the operations will be transferred to American Sterling Bank. This move will not affect Eldorado Bancshares's other banking operations in the Sacramento area or their ability to originate mortgages on a retail basis.

Key Takeaways:

  • Eldorado Bancshares and American Sterling Bank have reached an agreement in principle for the wholesale mortgage lending division of American Sterling Bank to acquire Commerce Security Mortgage, Eldorado Bancshares's wholesale mortgage operation.
  • The transaction is subject to approval by the Boards of Directors of both companies, with the terms not being disclosed.
  • The acquisition will not affect Eldorado Bancshares's other banking operations in the Sacramento area or their ability to originate mortgages on a retail basis.
  • American Sterling Bank operates with $180 million of assets and specializes in conventional mortgage products with highly competitive pricing and aggressive underwriting.
  • The bank uses technology to streamline mortgage processes, including automated underwriting, electronic document delivery, and web-enabled pipeline tracking systems.
  • American Sterling Bank has offices in Missouri, California, and Arizona, and is a division of the American Sterling Group, a privately-held enterprise with operating divisions in banking, insurance, entertainment, real estate, and high-technology.

Statistics:

  • American Sterling Bank has over $180 million of assets.
  • In 1998 and 1999, American Sterling Bank closed over $1.3 billion in real estate loans for resale into the secondary market.
  • Commerce Security Mortgage has operations in California and Arizona, and will be acquired by American Sterling Bank.

Sources:

  • "Eldorado Bancshares, Inc. and American Sterling Bank Announce Agreement in Principle for Acquisition of Wholesale Mortgage Operation." Business Wire, March 13, 2000.