United Financial Mortgage (AMEX:UFM)
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United Financial Mortgage Corp. Announces Definitive Agreement to
Acquire Vision Mortgage Group, Inc.
Acquisition Expected to Be Immediately Accretive to Earnings; Company Continues
to Expand Its Retail Origination Division
OAK BROOK, Ill., Aug. 17 /PRNewswire-FirstCall/ -- United Financial Mortgage
Corp. (AMEX:UFM) (the "Company") announced today that it has signed a
definitive agreement to acquire Rockford, Illinois-based Vision Mortgage Group,
Inc. ("Vision Mortgage"). Terms were not disclosed.
Vision Mortgage is a privately held retail originator of residential mortgage
loans that acts as both a mortgage banker and broker. Vision Mortgage, which
has served the Rockford (Rock River Valley) area since 1999, has 50 full-time
employees and operates three branches in Illinois and one in the State of
Washington. In 2003, Vision Mortgage was one of the largest mortgage
originators in the Rock River Valley. Mr. Cass Wolfenberger and Mr. Michael
Urnezis, founders of Vision Mortgage, will remain with the Company after the
consummation of the acquisition and will serve as President and Senior Vice
President, respectively, of the Vision Mortgage division of UFM.
Steve Khoshabe, President and CEO of UFM, stated, "I look forward to the
completion of this acquisition. We are excited about incorporating Vision
Mortgage's business model, which is focused on developing realtor and builder
relationships, into our retail origination network. We also anticipate that we
will improve Vision Mortgage's financial performance as a result of our
secondary market execution, lower cost of warehouse financing and the
introduction of administrative synergies. The addition of Vision Mortgage will
broaden our presence in our home state of Illinois and will increase the total
number of our retail branches to 33."
UFM anticipates that the acquisition will be non-dilutive and immediately
accretive to UFM's earnings. For the year ended December 31, 2003, Vision
Mortgage originated $148 million in mortgage loans. Through the first seven
months of this year, Vision Mortgage has originated $78.6 million in mortgage
loans, with purchase money mortgages comprising 65% of its originations. For
fiscal year ended April 30, 2004, UFM had revenues of $70.2 million with
earnings of $.97 per diluted share.
Mr. Wolfenberger, CEO of Vision Mortgage stated, "This relationship with United
Financial Mortgage Corp. provides us with the financial foundation necessary to
expand and grow our business. The synergies between the two companies make
United Financial a perfect fit for us".
Mr. Urnezis, President of Vision Mortgage, further commented, "This transaction
not only offers tremendous value to our customers, but our employees as well.
UFM's extensive line of mortgage products, continued investment in technology
and its marketing resources will enable our employees to service their
customers at the highest level, while allowing them to continue to expand their
business."
About United Financial Mortgage Corp.
United Financial Mortgage Corp. is an independent originator and servicer of
residential and commercial mortgage loans. The Company is headquartered in
Oak Brook, Illinois and has 37 offices in 14 states. For additional
information, please visit the Company's web site at http://www.ufmc.com/ .
This press release contains, and future oral and written statements may
contain, forward-looking statements within the meaning of such term in the
Private Securities Litigation Reform Act of 1995 with respect to the Company's
business, financial condition, results of operations, plans, objectives and
future performance. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of management and on information
currently available to management, are generally identifiable by the use of
words such as "believe," "expect," "anticipate," "plan," "intend," "estimate,"
"may," "will," "would," "could," "should" or other similar expressions.
Additionally, all statements in this document, including forward-looking
statements, speak only as of the date they are made, and the Company undertakes
no obligation to update any statement in light of new information or future
events. A number of factors, many of which are beyond the ability of the
Company to control or predict, could cause actual results to differ materially
from those in its forward-looking statements. These factors include, among
others, the following: (i) changes in demand for mortgage loans due to
fluctuations in the real estate market, interest rates or the market in which
the Company sells its mortgage loans; (ii) the Company's access to funding
sources and its ability to renew, replace or add to its existing credit
facilities on terms comparable to the current terms; (iii) assumptions
underlying the value of the Company's retained mortgage loan-servicing rights;
(iv) the negative impact of economic slowdowns or recessions; (v) management's
ability to manage the Company's growth and planned expansion; (vi) the effect
of the competitive pressures from other lenders or suppliers of credit in the
Company's market; (vii) changes in government regulations that affect the
Company's business; (viii) the Company's ability to expand origination volume
while reducing overhead; (ix) the impact of new state or federal legislation or
court decisions restricting the activities of lenders or suppliers of credit in
the Company's market; (x) other risk factors disclosed from time to time in the
Company's filings with the Securities and Exchange Commission; and (xi) the
inability of the Company to manage the risks associated with the foregoing as
well as anticipated. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not be placed
on such statements. Additional information concerning the Company and its
business, including additional factors that could materially affect the
Company's financial results, is included in the Company's filings with the
Securities and Exchange Commission.
DATASOURCE: United Financial Mortgage Corp.
CONTACT: Steve Khoshabe, President & Chief Executive Officer, United
Financial Mortgage Corp., +1-630-571-7222, or fax, +1-630-571-2623, or
; or Dave Gentry, Aurelius Consulting Group, Inc.,
+1-407-644-4256, or fax, +1-407-644-0758, or , for United
Financial Mortgage Corp.
Web site: http://www.ufmc.com/