Bank of Commerce Mortgage Buys Back 51% of Capital Stock
SAN RAMON, Calif., Oct. 9, 2012 /PRNewswire/ -- Bank of Commerce Mortgage (BOCM) has agreed to re-acquire 51% of its' capital stock from Bank of Commerce Holdings (NASDAQ: BOCH). In May 2009, Bank of Commerce Holdings purchased a majority position of Simonich Corporation dba Bank of Commerce Mortgage - a residential mortgage banking company headquartered in San Ramon, California.
In the terms of the agreement, Bank of Commerce Holdings will sell back the 51% ownership position to the partners of Simonich Corporation - Scott Simonich and Mario De Tomasi. This agreement also provides for a continued relationship between the two companies on the funding side and places both parties in a positive strategic position to pursue their core competencies.
"We are happy that Bank of Commerce Holdings recognized the value of our strong mortgage franchise and our dedicated employees," said Scott Simonich, President and CEO of Bank of Commerce Mortgage. "This agreement reaffirms our commitment to focus on our strategy of building our mortgage banking franchise significantly in multiple locations and to also continue our valuable lending relationship with BOCH."
Patrick J. Moty, President and CEO of Bank of Commerce Holdings said "We are pleased to announce this sale, as it further aligns our strategic focus on core banking, enables us to redeploy capital and to continue our relationship with Simonich Corporation as a lender."
The transaction is expected to close in the third quarter of 2012. Mario De Tomasi, CFO and COO of Bank of Commerce Mortgage commented on the re-acquisition, "From an operational perspective, very little will change. Bank of Commerce Holdings has always been a passive investor and has allowed our management team to fully manage the company. In order to carry out our long term strategy, our partnership with BOCH was destined to evolve. This is an important strategic move - as this acquisition strengthens our company in numerous ways and will bring about exciting changes - including business development opportunities."
Bank of Commerce Mortgage (BOCM) was named one of the Top Work Places in the Bay Area for 2012. http://www.mercurynews.com/topworkplaces.
About Bank of Commerce Mortgage:
As a HUD approved lender, BOCM approves and funds FHA, VA and USDA loans in addition to jumbo, conforming and reverse mortgages. BOCM provides loan originators with the ability to close transactions quickly and offers mortgage loans tailored to fit the needs of borrowers. Made up of some of the industry's most trusted mortgage professionals, BOCM provides the right combination of people, technology and financial strength. Bank of Commerce Mortgage is headquartered in San Ramon, California and serves customers from a wide range of locations throughout California, Colorado and Nevada. BOCM welcomes inquiries from those interested in joining our dynamic team (visit bocmcareers.com). For more information regarding BOCM please call (925) 275-6844 or visit the company's website at www.bocm.com.
Media Contact: Scott Harris
Bank of Commerce Mortgage
SOURCE Bank of Commerce Mortgage