Matrix Bancorp (NASDAQ:MTXC)
Historical Stock Chart
From Jun 2019 to Jun 2024
Matrix Bancorp, Inc. (NASDAQ: MTXC) (the "Company")
announced today that its wholly owned subsidiary Equi-Mor Holdings,
Inc. ("Equi-Mor") has signed a non-binding letter of intent ("LOI") to
sell all of its membership interests in ABS Schools Services, LLC
("ABS"), a provider of financing and outsourced business services to
charter schools, to SKS Ventures, LLC ("SKS") for $7.41 million. The
principal members of SKS are D. Mark Spencer and Richard V. Schmitz,
the former Co-Chief Executive Officers of the Company. It is presently
anticipated that the Company, or one of its affiliates, will provide
SKS with up to $4 million in financing for the transaction. A closing
of the transaction is expected to take place on or about April 30,
2006.
According to the LOI, certain ABS assets would be transferred to
Equi-Mor or the Company prior to closing. SKS will assume all
liabilities associated with the ABS loan portfolio transferred to SKS,
including Equi-Mor's approximately $5.5 million recourse obligation to
a third-party financial institution, except that Equi-Mor will provide
a limited guarantee of up to $1.65 million for the loans held in the
portfolio by ABS and the obligations to the third-party financial
institution described above. If ABS is resold by SKS less than 12
months after the proposed acquisition, Equi-Mor would be entitled to
share in a portion of the excess, if any, over the price paid by SKS.
The transaction is subject to the receipt of all necessary regulatory
approvals as well as the successful negotiation of a definitive
agreement. Equi-Mor may elect to sell ABS or its assets to a third
party other than SKS at any time prior to closing with no liability to
SKS other than its actual out of pocket costs up to a maximum of
$50,000.
Denver-based Matrix Bancorp, Inc. is focused on developing its
community-based banking network through its Matrix Capital Bank
subsidiary by strategically positioning branches across Colorado's
Front Range market. The Bank plans to grow its network to an estimated
five to seven community-based branches over the next three to five
years. The Company recently identified "United Western" as its
proposed new brand name and anticipates a formal change in legal and
trade names during second or third quarter of 2006, after receiving
applicable regulatory and shareholder approvals.
At December 31, 2005, the Company reported total consolidated
assets of $2.1 billion, total loans of $1.4 billion, total deposits of
$1.1 billion and total consolidated shareholders equity of $180.7
million (includes proceeds used for the Company's January 2006 tender
offer). For more information, please visit www.matrixbancorp.com.
Certain statements contained in this press release that are not
historical facts, including, but not limited to, statements that can
be identified by the use of forward-looking terminology such as "may,"
"will," "expect," "anticipate," "predict," "believe," "plan,"
"estimate" or "continue" or the negative thereof or other variations
thereon or comparable terminology, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995, and involve a number of risks and uncertainties. The actual
results of the future events described in such forward-looking
statements in this press release could differ materially from those
stated in such forward-looking statements. Among the factors that
could cause actual results to differ materially are: the timing of
regulatory approvals or consents for contemplated actions; the
successful negotiation of a mutually acceptable definitive agreement;
general economic conditions; competition; the delay in or failure to
receive any required shareholder approvals of the contemplated
actions; the risks and uncertainties discussed elsewhere in the
Company's Annual Report on Form 10-K for the year ended December 31,
2005, filed with the Securities and Exchange Commission on March 15,
2006; and the uncertainties set forth from time to time in the
Company's periodic reports, filings and other public statements.