Living The American Franchise Dream - Grow Your Own Bank
Posted on: 22/08/2006
American Home Mortgage Investment Corp. to Acquire Flower Bank, fsb.
American Home Mortgage Investment Corp. today announced that it has entered into an agreement to purchase Flower Bank, fsb of Chicago, Illinois from Umbrella Bancorp, Inc. American Home's purchase of Flower is subject to regulatory approval. Flower Bank operates a single banking office and as of June 30, 2006 had $43.7 million of total assets.
American Home's strategic purpose in acquiring Flower is to gain a franchise through which banking products can be offered to American Home's customers as well as to the general public. American Home expects to record goodwill of approximately $16 million as a result of its acquisition of Flower. If American Home is successful in its acquisition of Flower, Flower will be operated as a stand-alone institution, and will not be combined with American Home's existing mortgage lending or mortgage servicing operations. In addition, American Home does not expect Flower to provide a material benefit to American Home's financial results or to materially affect its financial condition for several years.
American Home Mortgage Investment Corp. is a mortgage real estate investment trust ("REIT") focused on earning net interest income from self-originated loans and mortgage-backed securities, and, through its taxable subsidiaries, from originating and selling mortgage loans and servicing mortgage loans for institutional investors. Mortgages are originated through a network of loan production offices and mortgage brokers as well as purchased from correspondent lenders, and are serviced at the Company's Irving, Texas servicing centre.
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