FirstCity Financial Corporation And Varde Partners, Inc. Announce Acquisition Of A Portfolio Of Non-Performing And Underperforming Assets And The Acquisition Of Class A Common Stock Of Intervest Bancshares Corporation
WACO, Texas, May 25, 2010 (GLOBE NEWSWIRE) -- FirstCity Financial Corporation (Nasdaq:FCFC) today announced that on May 25, 2010, VFC Partners 4 LLC, an affiliate of FirstCity Financial Corporation ("FirstCity"), acquired a portfolio of non-performing and underperforming assets from Intervest National Bank and Intervest Mortgage Corporation (collectively the "Sellers"). VFC Partners 4 LLC is an entity formed by FirstCity and Värde Partners, Inc. ("Värde") for the acquisition. An affiliate of FirstCity, FirstCity Servicing Corporation will serve as exclusive servicer and asset manager of the purchased portfolio.
The assets purchased from the Sellers consisted of loans having an approximate face amount of $192 million and real estate owned of approximate carrying value of $5.5 million. The assets purchased were comprised mainly of non-performing and underperforming loans on commercial real estate and multi-family properties and other real estate owned in New York and Florida. In connection with this transaction, VFC Partners 4 LLC has agreed to purchase from the Sellers an additional property located in Ohio with an approximate carrying value of $9.8 million. The closing of that transaction is expected to take place in approximately two weeks.
Also on May 25, 2010, affiliates of FirstCity and Värde acquired 850,000 shares of the Class A Common Stock of Intervest Bancshares Corporation ("Intervest"), the parent of the Sellers, for an aggregate purchase price of $4,250,000. These newly issued shares represent 9.9% of the issued and outstanding shares of the Class A Common stock.James T. Sartain, President and Chief Executive Officer of FirstCity, stated that, "FirstCity is excited about closing on this opportunity which is in keeping with our long term strategy of buying distressed portfolios but in addition, the equity purchase component of the transaction is a strategy that FirstCity and Värde believe to be a solution to other community banks seeking new equity capital. FirstCity along with its partner Värde anticipates continuing this strategy seeking similar opportunities in commercial banks throughout the United States."
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