Form 8-K for FIRST CHESAPEAKE FINANCIAL CORP filed on September 24, 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) August 24, 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 Funding Corporation Inks Agreements
to Acquire Three Mortgage Companies
In what is hoped to be its first wave of acquisitions, First Chesapeake Funding
Corporation, a wholly owned subsidiary of First Chesapeake Financial Corporation
(the "Company") has announced the execution of letters of intent to purchase
three mortgage companies.
The consolidated historical financials of the merged organization indicate gross
monthly closed loan production in excess of $30 million and historic net profits
of slightly more than $2 million annually.
Additionally, the corporation will expand to thirteen branches in seven states,
offering both conventional and alternative documentation loans on a wholesale
and retail basis.
Due diligence is anticipated to be completed in the fourth quarter of 1998, with
completion of the transactions scheduled to occur before the year's end.
According to First Chesapeake Funding's President, Les Salzman, the corporation
will utilize these acquisitions as the cornerstone of its national expansion.
"We are delighted by the blend of acquisitions. They will give us the
geographical and product mix that fits our growth plan. We will be in markets
that we are comfortable with and can manage effectively while offering a blend
of loans that provide a hedge against interest rate sensitivity." Said Salzman.
"The historical performance of the companies we are acquiring provides us with
strong consistent team members. But most impressive is the collective management
talent that we will enjoy. We will have an aggressive and talented group that
has succeeded using their own money," Salzman continued: "These are people who
have rolled up their sleeves and know how to make money."
First Chesapeake Funding's operational headquarters will remain at 8551 W.
Sunrise Boulevard, Plantation, FL 33322. Further information may be obtained by
calling the corporation at (954) 385-8400 or by fax at (954) 474-2438.
The Company is a Virginia corporation engaged in the residential and commercial
mortgage banking business at both the wholesale and retail platforms.
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.
Contact: Richard N. Chakejian, Jr., President
Mark E. Glatz, Chief Financial Officer
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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: September 24, 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
