United Financial Mortgage (AMEX:UFM)
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United Financial Mortgage Corp. Enters Into Definitive Agreement
to Acquire The Prime Wholesale Origination Division of AmPro Mortgage
Corporation
* Acquisition is non dilutive and immediately accretive to earnings * Expected
to add between $2.4 and $3 billion in annual originations * Upon completion,
the acquisition creates the 29th largest wholesale residential mortgage lender
in the country and ranks UFM as the 58th largest national mortgage lender in
the United States
OAK BROOK, Ill., May 5 /PRNewswire-FirstCall/ -- United Financial Mortgage
Corp. (AMEX:UFM) (the "Company") announced today that on May 4, 2005, it signed
a definitive agreement with Dallas, Texas-based AmPro Mortgage Corporation
("AmPro") pursuant to which UFM agreed to acquire AmPro's eight prime wholesale
production offices and AmPro's Phoenix, Arizona, operations center. The
transaction, which is structured as an asset purchase, will be completed once
certain customary closing conditions have been satisfied, including the receipt
by UFM of certain state licenses necessary to operate the acquired offices and
to continue to operate the wholesale origination division. The parties have
agreed to operate the prime wholesale origination division in accordance with
the terms of the definitive agreement pending the closing.
The Company expects the acquisition to contribute total additional annual
originations of between $2.4 and $3 billion, representing between approximately
a 90% to 112% increase over UFM's fiscal 2005 originations. The acquisition is
also expected to have an accretive impact on UFM's earnings.
Steve Khoshabe, President and CEO of UFM, commented, "This is a significant
development for our Company and demonstrates the continued execution of our
accretive acquisition strategy, which should allow us to profitably increase
our transaction count at a time that the mortgage industry continues to
contract. The purchase of AmPro's prime wholesale origination business will
increase our loan production capability and is expected to immediately increase
our earnings. AmPro's prime wholesale origination business is a high-quality
business with some of the most successful and capable sales, operations and
management personnel in the wholesale mortgage loan origination business. This
acquisition will give us a significant presence in states where we currently
have no infrastructure, including Arizona, Colorado and Texas, will add scale
in other markets where we currently operate, such as Florida and Georgia, and
will solidify our already strong presence in California."
As part of the transaction, UFM has agreed to extend employment to AmPro's
employees at the acquired locations. The companies have agreed to work
together closely to ensure a smooth transition and integration process. After
consummation of the acquisition, AmPro's Executive Vice President of
Production, Gary Plooster, is expected to join UFM and serve as President of
the AmPro division of UFM, where he will continue to be responsible for the
day-to-day operations of the acquired branch offices.
William Starkey, Chairman of AmPro Mortgage, stated, "We are very pleased with
this transaction and the value it brings to both the current shareholders of
AmPro Mortgage and United Financial. AmPro Mortgage recently made a strategic
decision to exit the wholesale prime origination market. This transaction
allows our employees to join a high-quality, successful company without
disruption to their business or families."
The acquisition is consistent with UFM's core growth strategy of growing
through select accretive acquisitions. On completion of the acquisition,
according to information published by National Mortgage News, which is based in
Washington, D.C., UFM will be the 29th largest residential wholesale mortgage
lender in the country and the 58th largest residential mortgage lender in the
United States, based on 2004 loan originations.
About United Financial Mortgage Corp.
United Financial Mortgage Corp. is an independent mortgage banker that
originates, funds, sells and services residential and commercial mortgage
loans. The Company is headquartered in Oak Brook, Illinois, and has 44 retail
offices and 8 wholesale operations centers across 16 states. For additional
information, please visit the Company's web site at http://www.ufmc.com/ .
About AmPro Mortgage Corporation
AmPro Mortgage Corporation is a privately held mortgage banker that originates
prime mortgage loans through eight wholesale offices and sub prime mortgage
loans through its Santa Ana, California-based division, WestWorks Mortgage.
AmPro Mortgage Corporation is headquartered in Dallas, Texas.
This press release contains "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, including,
among others, changes in demand for mortgage loans, the Company's access to
funding sources and the terms upon which it can obtain financing, assumptions
underlying the value of the Company's retained mortgage loan- servicing rights,
the impact of economic slowdowns or recessions, management's ability to manage
the Company's growth and planned expansion, difficulties in integrating or
operating newly acquired businesses, competition in the Company's market,
changes in government regulations, the Company's ability to expand origination
volume while reducing overhead, the impact of new legislation or court
decisions restricting the activities of lenders or suppliers of credit in the
Company's market, other risk factors disclosed from time to time in the
Company's filings with the Securities and Exchange Commission and 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.
For Further Information Contact:
Dave Gentry, Aurelius Consulting Group, Inc., Century Bank Building,
541 S. Orlando Avenue, Suite 206, Maitland, FL 32751, (407) 644-4256,
Fax: (407) 644-0758,
DATASOURCE: United Financial Mortgage Corp.
CONTACT: 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/