MELVILLE, N.Y., March 14 /PRNewswire-FirstCall/ -- American Home Mortgage
Corp., a subsidiary of American Home Mortgage Investment Corp. (NYSE: AHM),
announced today that it has signed a definitive agreement with Irwin Mortgage
Corporation, a wholly owned subsidiary of Irwin Financial Corporation
(NYSE: IFC), to acquire community mortgage loan production branches in
Arizona, California, Colorado, Hawaii and Washington. In addition, American
Home will acquire Irwin Mortgage's credit union affinity business, which
markets mortgage loans through mortgage salespersons located onsite at
approximately 50 credit unions.
American Home expects total additional annual originations of between
$500 million and $1 billion as a result of the acquisition. The acquisition
is expected to have a limited accretive impact on American Home's earnings
beginning concurrent with the closing of the acquisition, which is expected to
occur in April. The closing is subject to customary conditions, including
American Home obtaining state licenses to operate the acquired branch offices.
As part of the transaction, American Home will extend employment to Irwin
Mortgage employees at the acquired locations. The companies have agreed to
coordinate closely to ensure a smooth integration process so that customer
service will not be disrupted.
John Johnston, President of American Home's Western Division, commented,
"The acquisition is consistent with our company's ongoing strategy of building
origination capabilities both through acquisitions and organic growth. I am
pleased at the opportunity to acquire a team of high quality mortgage
salespersons, managers and operations staff, and impressed by the team's
proven ability to profitably serve customers." Michael Strauss, American
Home's Chairman and Chief Executive Officer, added, "The additional loan
production gained through our purchase from Irwin will increase our company's
ability to add assets to our portfolio at less than their capital markets cost
through self-origination, and is expected to contribute to our ongoing effort
to enhance the return from our portfolio."
American Home Mortgage Investment Corp. is a mortgage real estate
investment trust (REIT) focused on earning net interest income from self-
originated mortgage-backed securities, and through its taxable subsidiaries,
from originating and servicing mortgage loans for institutional investors.
Mortgages are originated through a network of loan production offices as well
as through mortgage brokers and are serviced at the Company's Columbia,
Maryland, servicing center. For additional information, please visit American
Home's website at http://www.americanhm.com.
This news release contains "forward looking statements" that are based
upon expectations, estimates, forecasts, projections and assumptions. Any
statement in this news release that is not a statement of historical fact,
including, but not limited to, earnings guidance and forecasts, projections of
financial results and loan origination volume, expected future financial
position or business strategy, and any other statements of plans,
expectations, objectives, estimates and beliefs, is a forward-looking
statement. Words such as "look forward," "will," "anticipate," "may,"
"expect," "plan," "believe," "intend," and similar words, or the negatives of
those words, are intended to identify forward-looking statements. Such
forward-looking statements involve inherent known and unknown risks,
uncertainties and other factors that are difficult to predict, and are not
guarantees of future performance. As a result, actual future events may
differ materially from any future results, performance or achievements
expressed in or implied by this news release. Specific factors that might
cause such a difference include, but are not limited to, American Home's
limited operating history with respect to its portfolio strategy; the
potential fluctuations in American Home's operating results; American Home's
potential need for additional capital; the direction of interest rates and
their subsequent effect on the business of American Home and its subsidiaries;
risks associated with the use of leverage; changes in federal and state tax
laws affecting REITs; federal and state regulation of mortgage banking; those
risks, uncertainties and other factors discussed in filings made by American
Home with the Securities and Exchange Commission; and possible difficulties
completing the transaction contemplated in this news release. American Home
does not assume any responsibility, and expressly disclaims any
responsibility, to issue updates to any forward-looking statements discussed
in this press release, whether as a result of new information, future events
or otherwise.
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