Bay View To Buy PSB Lending

Bay View Capital Corp., San Mateo, Calif., has agreed to purchase Carlsbad, Calif.-based PSB Lending Corp., an indirect originator of home equity loans with high loan-to-value ratios, from Pacific Southwest Bank, Dallas.Bay View will pay $153 million for PSBL, of which $53 million will be cash and $100 million will be in common stock. In addition, Pacific Southwest could receive up to an additional $147 million under provisions of an earn-out agreement. Following completion of the deal, which is expected to be in the fourth quarter, PSBL will change its name to Bay View Consumer Finance Corp. and become a subsidiary of Bay View Bank. Bay View president and chief executive Edward H. Sondker said high-LTV home equity loans are "a natural extension of our consumer finance platform, with many characteristics similar to those products currently offered by Bay View Credit, one of our auto finance subsidiaries."