Beverly Hills Bancorp Inc. of Calabasas, Calif., is back to looking for a buyer, with no prospects in sight.

The $1.5 billion-asset company needs capital urgently to satisfy regulators, now that an agreement it struck last month to get a cash infusion has fallen through.

Though the deal price was never disclosed, Orchard First Source Asset Management LLC, a commercial lender in Rolling Meadows, Ill., had agreed to take an 80% stake in Beverly Hills Bancorp and replenish its capital. Orchard intended to merge its lending unit, OFS Funding LLC, into the bank subsidiary, First Bank of Beverly Hills.

But Larry B. Faigan, the chief executive officer of both Beverly Hills Bancorp and First Bank, said in an interview Thursday that the deal has been terminated, because it failed to win regulatory approval.

Faigan would not discuss what the objections were, but said he fears the regulatory hurdle could dampen the company's chances for success as it continues to look for a buyer and attempts to raise capital.

"Since whatever is put forth has to pass through regulators, and this one didn't, it may chill others from coming forward because of the costs," he said.

A Feb. 13 cease-and-desist order required Beverly Hills Bancorp to find a buyer within 30 days or raise at least $70 million of capital within 60 days.

The company said late Wednesday that it was "not presently in negotiations" with any potential buyers or investors.

Beverly Hills Bancorp has been suffering from heavy losses on its condominium lending. Its capital plunged in the fourth quarter as it charged off 21% of its loans.

At yearend its bank unit had a Tier 1 leverage ratio of 3.37%. The regulatory order requires that ratio to be raised to at least 8%, well above the usual 5% standard.

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