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AMERICAN BUSINESS FINANCIAL SERVICES
FILES FORM 8-K WITH SECURITIES AND EXCHANGE COMMISSION.
Bala Cynwyd, PA - September 27, 2000 - American Business Financial Services,
Inc., (NASDAQ: ABFI) a diversified financial services company operating
throughout the United States, today announced that it will be filing its Form
10-K and reporting fiscal 2000 earnings within 15 days of September 28, 2000 as
provided by the Securities and Exchange Commission's rules. The delay in filing
the Form 10-K is the result of the Company being unable to obtain the
information necessary to complete the evaluation of the carrying value of
certain assets at this time. The Company anticipates recording a write-down of
its interest-only strips as a result of a contemplated change in the discount
rate used to value the interest-only strips. The adjustment to the carrying
value of the interest-only strips will be recorded as an expense and the Company
will have a loss for the fourth quarter of fiscal 2000.
ABFI believes that this valuation adjustment will allow it to realize higher
accretion income in the future. The decision to use a higher discount rate was
made in light of a period of sustained higher interest rates and other external
forces and not because of any deterioration in the asset quality of the loan-
servicing portfolio.
The Company expects to report the impact of the adjustment along with complete
financial reporting for fiscal 2000 on or before October 13, 2000. The Company
also filed a Form 8-K regarding this matter with the SEC.
About American Business Financial Services, Inc.: American Business Financial
Services, Inc. is a diversified financial services company which provides
business loans and first and second home equity mortgage loans. The Company
offers its products and services to consumers and businesses nationwide.
For further information contact Albert W. Mandia, Executive Vice President and
CFO, 610-617-4939, Keith Bratz, VP-Corporate Communications, 610-617-7475, or
David R. Evanson, Gregory FCA Communications, 610-649-3604.
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Certain statements contained in this press release which are not historical
fact, may be deemed to be forward-looking statements under federal securities
laws. There are many important factors that could cause American Business
Financial Services and its subsidiaries' actual results to differ materially
from those indicated in the forward-looking statements. Such factors include,
but are not limited to, general economic conditions, including interest rate
risk, future residential real estate values, regulatory changes (legislative and
otherwise) affecting the real estate market and mortgage lending activities,
competition, demand for ABFI's and its subsidiaries' services, availability of
funding, loan payment rates, delinquency and default rates, changes in factors
influencing the loan securitization market and other risks identified in
American Business Financial Services, Inc.'s Securities and Exchange Commission
filings.
