United Financial Mortgage Corp. Announces Definitive Agreement to Acquire Plus Funding
15 December 2004 - 12:29AM
PR Newswire (US)
United Financial Mortgage Corp. Announces Definitive Agreement to
Acquire Plus Funding -- Company Continues to Expand its Retail
Origination Division OAK BROOK, Ill., Dec. 14
/PRNewswire-FirstCall/ -- United Financial Mortgage Corp.
(AMEX:UFM) (the "Company") announced today that it has signed a
definitive agreement to acquire Carlsbad, California-based Plus
Funding. Terms were not disclosed. Plus Funding is a privately held
retail originator of residential mortgage loans that acts as both a
mortgage banker and broker. Plus Funding, which has served the San
Diego area since 2000, has 66 full-time employees and operates
seven branches in southern California and one in Nevada. Mr. Thomas
Phanco and Mr. Phillip Ramsey, founders of Plus Funding, will
remain with the Company after the consummation of the acquisition
and will serve as President and Vice President, respectively, of
the Plus Funding division of UFM. Steve Khoshabe, President and CEO
of UFM, stated, "I look forward to the completion of this
acquisition. We anticipate that we will improve Plus Funding'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 Plus Funding will be
our first retail presence in the state of California and will
increase the total number of our retail branches to forty-seven."
UFM anticipates that the acquisition will be non-dilutive and
immediately accretive to UFM's earnings. For the year ended
December 31, 2003, Plus Funding originated $234 million in mortgage
loans and had revenues of approximately $6.1 million. Through the
first eleven months of this year, Plus Funding has originated $275
million in mortgage loans. Through the six months ended October 31,
2004, UFM had revenues of $33.8 million with earnings of $.31 per
share. Mr. Tom Phanco, Chief Executive Officer of Plus Funding
stated, "Being part of the United Financial Mortgage team will give
our sales team the tools and financial foundation necessary to grow
their business." On August 31, 2004, UFM announced the acquisition
of Vision Mortgage Group, a privately held originator of
residential mortgage loans that serves the Rockford (Rock River
Valley) area. In 2003, Vision Mortgage was one of the largest
mortgage originators in the Rock River Valley. For the year ended
December 31, 2003, Vision Mortgage originated $148 million in
mortgage loans. 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 39 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/. 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 Web site:
http://www.ufmc.com/
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