Form 8-K for FIRST CHESAPEAKE FINANCIAL CORP filed on October 7, 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) October 2, 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
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ITEM 5. OTHER EVENTS
First Chesapeake Enters Agreement to Purchase Conventional Lending Platform
PHILADELPHIA, PA - First Chesapeake Funding Corporation, a wholly owned
subsidiary of First Chesapeake Financial Corporation (the "Company"; OTC
Bulletin Board: FCFN) has announced the signing of a letter of intent to
purchase an established wholesale lending platform that specializes in
conventional (conforming) loans.
The agreement represents the fourth in a series of planned acquisitions by the
Company. Subject to final due diligence, the current loan volumes of the merged
organization indicate annual closed loan production in excess of $400 million.
Following closing of the acquisitions, the Company will have 14 offices in seven
states, and will be licensed to operate in over 40 states. Due diligence is
anticipated to be completed during the fourth quarter of 1998, with completion
of the transaction targeted before year's end.
"This will be an important acquisition for us. Our growth has dictated a need
for a solid conventional platform to service our retail units. With this group,
we have brought a strong conservative element to our portfolio of products,"
said Les Salzman, President of First Chesapeake Funding Corporation. "We feel we
have created a very balanced menu of mortgage programs that is already gaining
acceptance in the marketplace."
The Company is engaged in the residential and commercial mortgage banking
business at both the wholesale and retail platforms. First Chesapeake Funding's
operational headquarters is at 8551 W. Sunrise Boulevard, Plantation, FL 33322.
Further information may be obtained by calling (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.
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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: October 7, 1998 By: Mark Mendelson
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Mark Mendelson, Chief Executive Officer
By: Richard N. Chakejian, Jr.
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Richard N. Chakejian, Jr. President
By: Mark E. Glatz
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Mark E. Glatz, Chief Financial Officer
