Humboldt Bancorp announced that the sale of its proprietary merchant bankcard operations to iPayment Holdings, Inc., which was expected to take place at the end of August, has not yet closed. iPayment has declined to sign an amendment to extend the August 30 termination date of the agreement. However, iPayment and Humboldt are continuing efforts to close this transaction. Humboldt, at this point in time, can make no assurance that the transaction will close.
Humboldt’s proprietary merchant bankcard operations continue to provide a consistent and significant source of non-interest revenue, with minimal fraud losses. For the six months ended June 30, 2002, Humboldt recognized approximately $7.6 million in non-interest revenue from its proprietary merchant bankcard operation and incurred net fraud losses of $140,000.
Humboldt Bancorp, with total assets of $984 million, is headquartered in Roseville, California. Through its principal operating subsidiary, Humboldt Bank, it offers business and consumer banking services through 23 banking centers, principally in Northern California, including its Tehama Bank and Capitol Valley Bank divisions.Details