BankAmerica's plan to buy an ailing Oregon bank has fallen through due to the big San Francisco bank's earnings and capital problems.
BankAmerica and Orbanco Corp., parent of Oregon Bank, announced the cancellation of the $57-million cash deal Wednesday.
"BankAmerica has higher priority demands on its resources at the present time, and Orbanco would like to find a buyer for the Oregon Bank sooner than mid-1987, which is when our purchase agreement was scheduled to expire," Samuel H. Armacost, BankAmerica president and chief executive, said in a statement.
Still Intend to Sell
"This is an amicable parting with BankAmerica," Francis J. O'Connor, Orbanco's president and chief executive, said in a statement. "We still intend to sell the Oregon Bank, and we have asked our investment bankers to find another purchaser."
Orbanco's board of directors approved the termination of the agreement on Monday. BankAmerica's effort to buy Oregon Bank, announced in April, 1985, ran into problems with the Federal Reserve Board, which regulates bank holding companies.