Washington Mutual has agreed to buy Commercial Capital Bancorp for about $983 million to increase returns from real estate banking in California, the companies said yesterday.

Washington Mutual, the nation’s biggest U.S. savings and loan, said it will pay $16 a share in cash for Commercial Capital, California’s third-biggest lender to multifamily dwellings, including apartment buildings. That’s 13 percent more than Commercial Capital’s closing stock price of $14.25 on April 21, the company said.

Buying Irvine, Calif.-based Commercial Capital will bolster Seattle-based Washington Mutual in California, the company said.

WaMu has made more than 10 purchases during the past decade to extend its reach beyond single-family mortgages to credit cards and small-business loans, including the acquisition of credit-card issuer Providian Financial Corp. last year for $5.52 billion.

The newly announced takeover of Commercial Capital “provides us additional opportunities” to increase deposits and cross-sell consumer banking products in California, Kerry Killinger, WaMu’s chief executive officer, said in a statement. The deal will add 4 cents per share to 2007 earnings. It won’t affect this year’s profit, the company said.

Washington Mutual had $348.7 billion of assets at the end of March, compared with Commercial Capital’s $5.5 billion as of Dec. 31. Commercial Capital earned $15.1 million last year, down 25 percent from 2004.

Washington Mutual’s first-quarter home-lending income fell nearly tenfold, to $38 million, compared with $323 million during the same period last year, the company said last week. In February, WaMu said it would close 10 of its 26 home-loan processing centers, eliminating 2,500 jobs.

WaMu’s stock was trading at $44.27 mid-morning, down 74 cents a share.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription