First Bank of Beverly Hills, FSB, Acquires Los Angeles-Based Commercial Mortgage Originator

Business Wire, Oct 13, 1998

PORTLAND, Ore. and BEVERLY HILLS, Calif.--(BUSINESS WIRE)-- October 13, 1998--First Bank of Beverly Hills, FSB, a subsidiary of Wilshire Financial Services Group Inc. (Nasdaq:WFSG), today announced that it has acquired George Elkins Mortgage Banking Company. Headquartered in Los Angeles, George Elkins originates commercial mortgages through four Southern California branches. Terms of the transaction were not disclosed. The purchase is expected to be accretive to First Bank's 1999 earnings. Key George Elkins executives Jeffrey Hudson and Steven Hinds are expected to stay on under the agreement.

"This acquisition represents an exciting opportunity for First Bank of Beverly Hills, and is consistent with our increased focus on commercial real estate originations and business lending," said Sheryl Morehead, CEO of First Bank. "George Elkins originated over $200 million in mortgages in 1997, primarily for insurance companies, and has a servicing portfolio in excess of $650 million. We see continued opportunities for portfolio lending in California and the Pacific Northwest, particularly in light of recent changes in the conduit market."

Andrew Wiederhorn, Chairman and CEO of Wilshire, added, "This acquisition, along with the recent growth in our residential mortgage operations, increases WFSG's potential mortgage origination volume to in excess of $1 billion annually. We are committed to expanding our origination capabilities, in concert with our asset acquisition and management operations, in part to add more predictability to Wilshire's revenue stream."

As of June 30, 1998, First Bank had assets of approximately $639 million and total deposits of approximately $423 million. Pre-tax earnings for the first six months of 1998 totaled approximately $6 million. The bank maintains offices in Beverly Hills and Calabasas, California, and in Portland, Oregon.

Wilshire Financial Services Group Inc. is a diversified financial services company conducting business in the U.S., U.S. Territories and Europe. The Company specializes in loan portfolio acquisition and securitization, mortgage banking, and servicing. The Company is headquartered in Portland, Oregon, USA and has offices throughout the United States and in the United Kingdom, France, Ireland, Italy, and Mexico.

All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the Company which are identified as forward-looking, the Company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. Such factors include but are not limited to, the real estate market, the availability of pools of loans at acceptable prices, and the availability of financing for loan pool acquisitions, and interest rates and overseas expansion. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the Company or any other person that the forward-looking statements contained in this release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.