HomeBanc Corp. Announces That Kevin D. Race Has Replaced Patrick S. Flood as Chief Executive Officer
17 January 2007 - 1:00AM
PR Newswire (US)
ATLANTA, Jan. 16 /PRNewswire-FirstCall/ -- HomeBanc Corp.
(NYSE:HMB) ("HomeBanc" or the "Company") announced today that Kevin
D. Race, the Company's current President, Chief Operating Officer,
Chief Financial Officer and a director, has replaced Patrick S.
Flood as the Company's Chief Executive Officer. In addition, James
B. Witherow, currently a director of the Company, has been
appointed as the non-executive Chairman of the Board of Directors.
Mr. Race joined HomeBanc as President and Chief Operating Officer
in 2002 and has over 24 years of mortgage banking experience. Mr.
Race was instrumental in HomeBanc's reorganization, change in
business model and initial public offering in 2004. The Company
closed approximately $5.1 billion of mortgage loans in 2006 and
currently has a servicing portfolio in excess of $7.7 billion. Mr.
Witherow has 28 years of experience in the mortgage banking
industry with over 20 years in executive management. He served as
President and Chief Executive Officer of First Horizon Home Loan
Corporation, the former parent company of HomeBanc, and as
President and Chief Executive Officer of Sunbelt National Mortgage
Corporation, a company acquired by First Horizon, from January 1992
until his retirement in December 2000. Mr. Witherow was ordained in
the Presbyterian Church (USA) in October 2003 and currently serves
as pastor of a congregation. Mr. Witherow stated, "On behalf of the
entire HomeBanc family, the Board of Directors extends its most
sincere appreciation to Pat for all of his many contributions to
our organization over the past 21 years. Pat's unwavering
commitment to our company, its people and its mission statement has
become the foundation of our organization and we will benefit from
this for many years to come. We wish Pat the best in his future
endeavors. We are also grateful that we had an excellent choice for
his replacement in Kevin Race." The Company also announced that,
after carefully considering a number of strategic alternatives, the
Board of Directors has determined that the most appropriate course
of action to maximize shareholder value at this time is to focus on
operating efficiencies and opportunities for growth. As part of
this strategy, the Company will continue to pursue its previously
announced decision not to operate as a real estate investment
trust, or "REIT," beginning in 2007. While the Board has completed
its previously announced review and consideration of strategic
alternatives, the Board remains committed to considering other
opportunities that may become available to the Company in the
future. Mr. Race stated, "The currently prevailing market
conditions in the mortgage industry continue to present mortgage
banking companies like HomeBanc with a number of challenges. We
believe that these conditions will begin to stabilize and improve,
and that we are taking actions that will position our company to
take advantage of these improved market conditions. Specifically,
we have identified, and will pursue, four key areas of focus in the
near-term: * Refine our operations to create a more efficient
origination and servicing platform; * Focus on maximizing GAAP
profitability; * Identify and pursue opportunities for growth; and
* Continue a disciplined approach to capital management, with a
focus on improving our book value. There are two underlying themes
in these keys to success: a more disciplined approach to improving
our infrastructure and operating costs, and a greater focus on
improving GAAP profitability and book value. We believe that this
strategy will enable us to persevere under the currently
unfavorable market conditions and position us to succeed in the
future." The Company will host a conference call at 1:00 p.m.,
Eastern Time on January 16, 2007. The conference call dial-in
number is 800-949-8987 in the United States and Canada. The
conference call ID number is 6488580. You may also listen to the
conference call under the investor relations section of the
HomeBanc website at http://www.homebanc.com/. PowerPoint slides to
accompany the conference call will be available on the Company's
website under "Investor Relations - Financial/Statistical
Information" and also on the Company's website under the "Investor
Relations - Webcast Live" link. The Internet broadcast will be
archived until January 30, 2007. A digital recording of the
conference call will be available for replay two hours after the
call's completion and will be available for replay through January
30, 2007. To access this recording, dial 800-642-1687 or
706-645-9291 and enter conference call ID 6488580. HomeBanc is the
parent holding company of HomeBanc Mortgage Corporation, a mortgage
banking company that focuses on originating purchase money
residential mortgage loans in the Southeast United State. HomeBanc
is headquartered in Atlanta, Georgia, and has offices in Georgia,
Florida and North Carolina. For more information about HomeBanc or
its mortgage products, visit HomeBanc on the Internet at
http://www.homebanc.com/. Forward-Looking Statements This
announcement may include forward-looking statements within the
meaning, and subject to the protection of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward- looking statements include statements
regarding the Company's current strategy to maximize shareholder
value, GAAP profitability and book value, including, without
limitation, the Company's decision not to operate as a REIT and its
ability to successfully implement cost reduction and other
efficiency measures, as well as its ability to improve capital
management; future market stabilization and improvement in
prevailing industry conditions; the Company's areas of current
focus in executing its strategy and positioning itself to take
advantage of future market conditions; and the Company's ability to
execute its strategy and be successful in the future. Such
forward-looking statements are based on information presently
available to the Company's management and are subject to any number
of risks and uncertainties, including, without limitation, the
risks described in the Company's SEC reports and filings under the
headings "Special Cautionary Notice Regarding Forward Looking
Statements" and "Risk Factors" and as discussed elsewhere in those
reports. You should not place undue reliance on forward-looking
statements, since the statements speak only as of the date that
they are made. The Company has no obligation and does not undertake
to publicly update, revise or correct any of the forward-looking
statements after the date of this announcement, or after the
respective dates on which such statements otherwise are made,
whether as a result of new information, future events or otherwise,
except as may be required by law. DATASOURCE: HomeBanc Corp.
CONTACT: Investor, Carol Knies, +1-404-459-7653, or , or Media,
Mark Scott, +1-404-459-7452, or Web site: http://www.homebanc.com/
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