Atlanta Expansion Continues With Acquisition of BancMortgage Financial Corp.
MEMPHIS, Tenn., Nov. 21 /PRNewswire/ -- National Commerce Financial
(NYSE: NCF) today announced it has entered into an agreement to acquire
BancMortgage Financial Corp., one of Atlanta's fastest growing and most
innovative mortgage lenders. The transaction is expected to close prior to
December 31, 2002. BancMortgage is presently a wholly owned subsidiary of
Habersham Bank, a subsidiary of Habersham Bancorp (Nasdaq: HABC). Immediately
prior to the acquisition by NCF, Robert S. Cannon and Anthony L. Watts, co-
vice chairmen of BancMortgage, will exercise a pre-existing option to purchase
the company from Habersham. Terms of the transaction were not disclosed.
BancMortgage originates, funds, and sells mortgage loans, and closes and
funds loans originated by outside mortgage brokers through its wholesale
operations. In addition to offering traditional mortgage origination products
and services, BancMortgage has a lending division that focuses on residential
construction and land acquisition and development as it relates to residential
construction in the Atlanta MSA. BancMortgage employs 51 originators in eight
offices, and a total of 204 employees in Georgia and Virginia.
The company ranks among the top 10 mortgage originators in Georgia, with
$1.4 billion in loan volume in 2001 and a compound annual growth rate of 43
percent during the five years ended 2001. Industry-wide mortgage origination
volume grew at an annual rate of 21 percent during the same timeframe.
"We are excited to welcome Bob and Tony to the NCF team. The acquisition
of a mortgage company of this magnitude and with such a strong reputation will
accelerate our de novo penetration of the Atlanta market," said William R.
Reed Jr., NCF chief operating officer. "In previous de novo entries, it took
several years to introduce our full array of banking and investment products.
Integrating BancMortgage's business and customer relationships into our
existing and planned branch infrastructure will enhance our cross-sell
capabilities, expediting revenue growth and profitability." Reed added that
the acquisition is expected to be accretive to earnings in the first year of
operations.
"NCF's entry in Atlanta, through its subsidiary National Bank of Commerce,
provided us with a great opportunity to join one of the nation's top-
performing financial institutions," said Cannon.
"With BancMortgage Financial's current growth rate at double the industry
average and National Bank of Commerce quickly gaining market share in the
Atlanta MSA, we should rapidly achieve synergies," said Watts. "It is an
exciting time for both companies."
The acquisition marks NCF's second major acquisition in the Atlanta market
in less than seven weeks. On October 8, NCF announced the purchase of 15
Wachovia branch buildings and the assumption of lease obligations on seven
others. National Bank of Commerce (NBC), an NCF banking subsidiary, launched
its first Atlanta branch in April 2002 as part of an agreement to open 30 in-
store locations inside select Kroger stores by the end of 2003. By the end of
2003, NBC is projected to have approximately 60 branches in the Atlanta metro
region opened or under development, including the 30 in-store Kroger branches
and eight Wal-Mart branches.
The addition of BancMortgage will approximately double NCF's mortgage
origination business. Similar to NCF's existing practice, mortgages
originated through BancMortgage will be sold to the secondary market with
servicing released. BancMortgage will continue to operate in the Atlanta
metropolitan area under the same name.
About NCF
National Commerce Financial Corporation is a sales and marketing
organization with $21 billion in assets. NCF, headquartered in Memphis, TN,
delivers select financial and consulting services through a national network
of banking affiliates, operating in 14 of the nation's fastest growing
metropolitan areas, and non-banking affiliates.
NCF was ranked #2 in performance among the largest U.S. banks as rated by
Lehman Brothers in its Third Quarter Operating Performance Review for 2002.
The balanced scorecard ranking is based on profitability, growth, operating
efficiency, fee income, capital, and balance sheet and operating asset
quality. Lehman Brothers has ranked NCF #1 or #2 for the past seven quarters.
Forward Looking Statements
These statements constitute forward-looking statements (within the meaning
of the Private Securities Litigation Reform Act of 1995), which involve
significant risks and uncertainties. A variety of factors could cause actual
results and experience to differ materially from the anticipated results or
other expectations expressed in such forward-looking statements.
NCF does not assume any obligation to update these forward-looking
statements or to update the reasons why actual results could differ from those
projected in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to
competition from both financial and non-financial institutions; changes in
interest rates, deposit flows, loan demand and real estate values; changes in
legislation or regulation; changes in accounting principles, policies or
guidelines; the timing and occurrence (or non-occurrence) of transactions and
events that may be subject to circumstances beyond the control of NCF; and
other economic, competitive, governmental, regulatory and technological
factors affecting NCF specifically or the banking industry or economy
generally.
SOURCE National Commerce Financial Corporation
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Related links:
http://www.ncfcorp.com
CONTACT:
media, Eileen M. Sarro, +1-919-683-7642, or
investors, M.J.A. "Jekka" Pinckney, +1-901-523-3525, both of
National Commerca Financial Corporation
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