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Investment Banking and
Strategic Business Development
American Home Mortgage Holdings Purchase of Columbia
National Inc.
Acquisition Summary
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Target Information |
| Target: |
Columbia
National Type of Company: Mortgage Banking |
| City: |
Columbia |
State: MD
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| Financial Data As Of: |
N/A |
Originations:
$2.8 billion |
Book Value: $11.0 million |
| Target’s Business: |
Columbia does
more than $8 billion of servicing and roughly $2.8 billion of
originations. The company has 57 branches in 16 states, concentrated in
the Middle Atlantic and Midwest. Columbia is the wholly-owned subsidiary
of Columbia National Holdings, Inc. and is engaged in the business of
originating, selling and servicing residential mortgage loans. |
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Acquirer Information |
| Acquirer: |
American Home (AHMH)
Type of Company: Mortgage Banking |
| City: |
Melville |
State: NY
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| Financial Data As Of: |
12/31/01 |
Originations:
$7.5 billion |
Book Value: $86 million |
| Acquirer’s Business |
The Company is
an independent retail mortgage banking company primarily engaged in the
business of originating and selling residential mortgage loans. The
Company offers a broad array of residential mortgage products targeted
primarily to high-credit-quality borrowers over the Internet, as well as
through its 551 primarily commission-compensated loan originators. The
Company operates from 63 loan offices in New York, California, Illinois,
Maryland, Virginia, Pennsylvania, New Mexico, Connecticut, New Jersey,
Arizona, Massachusetts, Florida and Colorado. The Company operates
primarily as a mortgage banker, underwriting, funding and selling its
loan products to more than 45 different buyers. |
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Transaction Information |
| Status: |
Pending |
| Announcement Date: |
06/17/02 |
Accounting:
Purchase |
| Completion Date: |
06/17/02 |
Consideration:
Stock |
| Deal Value: |
$37 million
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| Comments: |
American Home is
attempting to build a top 10 lender that handles all aspects of
mortgages, including servicing, as well as services offered by thrifts
such as handling core deposits and accounts. The acquisition of Columbia
is subject to a number of conditions, including the Company's ability to
raise at least $30 million in proceeds from a public offering of its
common stock. Columbia is the wholly-owned subsidiary of Columbia
National Holdings, Inc. and is engaged in the business of originating,
selling and servicing residential mortgage loans. The enterprise value
was $125 million, comprised of $37 million in cash and $88 million in
notes payable. The purchase was made for 3.4 times book value or a
premium of .93% on annual production. |
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