As the sale of Banc of California Inc.’s mortgage business approaches, the financial institution has disclosed plans to layoff more than a hundred employees.
In a Form 10-Q filing with the
Securities and Exchange Commission on March 1, the Irvine, California-based firm revealed a deal to sell its mortgage business.
According to the filing, an agreement was reached on Feb. 28 for Caliber Home Loans Inc. to purchase the mortgage banking assets of Banc Home Loans.
The deal calls for Banc of California to receive a $25 million cash premium payment in addition to $2.7 million in net book value of the assets. An additional $5 million cash premium might be paid to the bank
based on criteria tied to loan officer retention by the purchaser.
“Additionally, the bank will receive an earn-out, payable quarterly, based on the future performance of the business over the 38 months following completion of the transaction,” the filing states. “The purchaser retains an option to buyout the future earn-out payable to the bank in exchange for cash consideration of $35.0 million, less the aggregate amount of all earn-out payments made prior to the date on which the purchaser makes the payment of the buyout amount.”
The acquisition is expected to close by the end of this month.
Irving, Texas-based Caliber has additionally agreed to acquire mortgage servicing rights on around $3.8 billion conventional agency mortgages for $36 million.
A Worker Adjustment and Retraining Notification Act filing with the California Employment Development Department on March 2 indicates that Banc of California, N.A., will layoff 139 employees on May 1.
Irvine is the location of 45 of the job cuts, while another 94 are taking place in Santa Ana.
