Beverly Hills Bancorp announced Thursday that its merger agreement with an investment manager has been terminated.
The beleaguered Calabasas parent of First Bank of Beverly Hills said March 3 it had reached an agreement with Orchard First Source Asset Management LLC, a debt investor headquartered in Rolling Meadows, Ill., to merge the firm’s lending subsidiary into the bank’s operations.
Beverly Hills Bancorp said it is continuing to look for a merger or acquisition partner, or another way to raise capital.
The bank, which has $1.5 billion in assets, lost more than $80 million in the fourth quarter and fell below the level considered “well-capitalized.” Regulators subsequently ordered the bank to raise $70 million or sell itself.
In early trading Friday, Beverly Hills Bancorp’s stock lost more than 20 percent of its value and was trading in the 50-cent per share range.