SAN MATEO, Calif. Bay View Capital Corp. has announced plans to sell a $309 million package of franchise loans to Goldman Sachs Mortgage Co. for an undisclosed sum.
Bay View, which is unloading all assets unrelated to its core banking business, said Tuesday that it would record a $44 million charge in the second quarter to facilitate the sale, which trims its franchise loan portfolio to about $287 million, down from $780 million at the beginning of 2001. The sale is expected to close at the end of August.
We are continuing to divest anything that detracts from our business strengths or that is not local to the San Francisco Bay area, said Robert B. Goldstein, Bay Views president and chief executive officer, in a prepared statement. Bay View Capital, with $4.9 billion of assets, is the corporate parent of Bay View Bank.
The company would record an additional second quarter charge of $35 million to bolster its reserves backing the remaining portion of the portfolio.
The franchise loans were originated by Bay View Franchise Mortgage Acceptance Corp., a financing company Bay View purchased after converting from a thrift to a commercial bank in 1999.
Bay View lost $326.2 million in 2000, and reported losses totaling $8 million after the first three months of 2001.