Form 8-K for FIRST CHESAPEAKE FINANCIAL CORP filed on December 21, 1998
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 17, 1998
FIRST CHESAPEAKE FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
VIRGINIA 0-21912 54-1624428
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
12 OREGON AVENUE, PHILADELPHIA, PENNSYLVANIA 19148
(Address of principal executive offices)
Registrant's telephone number, including area code (215) 755-5691
(Former name or former address, if changed since last report.) Not applicable
<PAGE>
ITEM 5. OTHER EVENTS
First Chesapeake Acquires Conventional Wholesale Mortgage Platform and Internet
- --------------------------------------------------------------------------------
Sites
- -----
PHILADELPHIA, PA - First Chesapeake Financial (the "Company"; OTC Bulletin
Board: FCFN) today announced it reached final agreement to acquire FMB Mortgage
of Daytona Beach, Florida. The firm specializes in wholesale conventional and
government lending.
"By acquiring this well-respected group, we are continuing to grow our balanced
lending portfolio. We already have an existing alternate documentation loan
platform and the FMB purchase affords us a new level of economy and utilization
of our resources," noted Richard N. Chakejian, Jr., President of the Company.
The FMB group reports monthly closed loan volume of six to ten million dollars.
"This closing is the first of several anticipated as the result of a series of
letters of intent entered into by the Company in September and October of this
year. Due diligence is still underway pertaining to some of the targeted
acquisitions. However, we hope to have everything closed by early 1999. When the
assemblage is completed we will have a historic base on better than $450 million
of closed loans annually." Chakejian continued.
With the purchase of this lending operation the Company gains access to a number
of well-developed Internet sites which, in addition to offering a direct link
for consumers, should improve efficiencies at all First Chesapeake units through
direct access to the underwriting and central processing group in Florida.
"While the acquisition mix tends to be conservative in product, we feel we have
a well balanced blend of loan products. Additionally, we have targeted
geographic areas that are somewhat diverse," said Les Salzman, President of
First Chesapeake Funding Corporation, the Company's wholly-owned mortgage
banking subsidiary. "Our goal of being an aggressive competitor in the consumer
direct segment of the industry is becoming a reality. Our scales of economy are
balanced and we are now ready to step forward."
The Company is engaged primarily in the residential and commercial mortgage
banking business at both the wholesale and retail levels. First Chesapeake
Funding's operational headquarters is at 8551 W. Sunrise Boulevard, Plantation,
FL 33322. Further information may be obtained by calling Les Salzman at (954)
385-8400 or by fax to (954) 474-2438.
Statements in the press release concerning the Company's business outlook or
future economic performances, anticipated profitability, revenues, expenses or
other financial items, are forward-looking statements that are estimates
reflecting the best judgment of the Company based on currently available
information. Such forward-looking statements involve known and unknown risks,
uncertainties, contingencies and other factors that could cause results,
performance or achievements to differ materially from those stated. Such risks,
uncertainties, contingencies and other factors, many of which are beyond the
control of the Company, include overall economic and business conditions, trends
for the continued growth of the mortgage and financial services industry, the
realization of anticipated revenues, profitability and cost synergies, the
demand for the Company's products and services, pricing and other competitive
factors in the industry, new government regulations and/or legislative
initiatives, and other risks and uncertainties described in the Company's
reports and filings with the Securities and Exchange Commission. There can be no
such assurance that such factors will not affect the accuracy of such
forward-looking statements, and the Company assumes no obligation to update the
information in this release. SEVERAL OF THE TRANSACTIONS DESCRIBED HEREIN HAVE
NOT CLOSED, AND THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL COMPLETE THE
ACQUISITIONS DESCRIBED HEREIN.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on
its behalf by the undersigned hereto duly authorized.
FIRST CHESAPEAKE FINANCIAL CORPORATION
Date: December 21, 1998 By: Mark Mendelson
------------------------------
Mark Mendelson, Chief Executive Officer
By: Richard N. Chakejian, Jr.
------------------------------
Richard N. Chakejian, Jr. President
By: Mark E. Glatz
------------------------------
Mark E. Glatz, Chief Financial Officer
