Advanced Financial Inc. announced that it has signed a letter of intent to purchase the assets of an independent, California- based mortgage banking company.
Advanced said it was making the announcement to meet disclosure requirements but was withholding the name of the company until its employees are notified. The company is private.
The transaction will involve an exchange of Advanced Financial's common stock, not to exceed 2.18 million shares, for assets with an estimated value of $3 million. Completion of the transaction is expected within 30 days, pending shareholder approval.
The acquired company originates about $25 million in mortgages per month through 15 offices in three states. The combined company will originate about $35 million per month through 41 retail branches in 15 states.
Bill Moffatt, president and chief executive officer of Advanced Financial, said: "This acquisition is part of our strategic plan and a key first step in achieving significant growth and profitability in our core business."