First Bank of Beverly Hills has adopted a new strategy for growth: credit card processing.

The Los Angeles bank, a $144 million-asset subsidiary of Wilshire Financial Services Group Inc., is aiming to expand its credit card processing division by acquiring merchant credit card portfolios of rival banks, as well as third-party processors.

"For some financial institutions it may make sense to outsource or sell their portfolio rather than manage it themselves," said Andrew Wiederhorn, chief executive officer at Portland, Ore.-based Wilshire.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.