SAN MATEO, Calif. Bay View Capital Corp. said that it is selling about $110 million of high-risk franchise loans made to operators of fast-food restaurants, gas stations, and convenience stores.
Officials at the $6 billion-asset parent of Bay View Bank said that the sales, which are being made to multiple buyers, will not have a significant impact on fourth-quarter earnings because the loans were sold at or near par value. With these sales, Bay View said, it will have reduced its franchise loan portfolio to about $820 million by Dec. 31.
Bay View took a third-quarter charge of $10.5 million after announcing in September that it was closing its money-losing Franchise Mortgage Acceptance Co. subsidiary.
It also entered an informal agreement with the Office of the Comptroller of the Currency that required it to set a new budget as well as strategic and capital plans to reflect the units closing.
Bay View announced on Dec. 14 that it is continuing to work with Merrill Lynch & Co. on finding a buyer for the entire company.