Beverly Hills Bancorp's stock rose Thursday on news that the Calabasas, Calif., company is considering selling itself.
The $1.6 billion-asset Beverly Hills said in a Securities and Exchange Commission filing late Wednesday that it had hired Hovde Financial Inc. to advise it on its strategic alternatives, including a possible sale. On Thursday the shares rose 3.25%, to $7.63.
Shares of Beverly Hills had been steadily falling for the past year from a 52-week high of $9.62 on June 30. In the first half of last year its First Bank of Beverly Hills began focusing on making variable-rate construction and land development loans, particularly to condominium developers. It also became more dependent on wholesale borrowing to fund the loans.
In the first quarter the company's net income rose 6% from a year earlier, to $2.64 million, but the rising cost of funds caused its net interest margin to contract 69 basis points, to 2.01%.
