NetBank has established a specialty lending division with the newly acquired assets. Beacon's senior management team - including Austin Sedicum Jr., Alan Swimmer and John Redmond - have joined NetBank and will oversee the division.
The deal is expected to be immediately accretive. It provides the Beacon team with greater economic and operational efficiencies and NetBank, Inc. with additional asset generation capabilities. Beacon earned pre-tax income of $2.7 million in 2003 from $393 million in loan production. Last year's production was at a record high due in part to the prevailing low interest rate environment.
For additional information, please refer to NetBank, Inc.'s previous press release issued on June 10, 2004. The company also filed a Form 8-K with the Securities Exchange Commission on the same date that contains further detail on the purchase agreement.
About NetBank, Inc.
NetBank, Inc. (Nasdaq: NTBK) operates with a revolutionary business model through a diverse group of complementary financial services businesses that leverage technology for more efficient and cost effective delivery of services. Its primary areas of operation include personal and small business banking, retail and wholesale mortgage lending, and transaction processing. For more information, please visit www.netbank.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Information in this press release about 1) the decision of Beacon's management team to remain with NetBank, Inc.; 2) immediate accretion from the deal; 3) new economic and operational efficiencies for Beacon; and 4) additional asset generation capabilities for NetBank, Inc. are "forward-looking statements" involving risks and uncertainties that could cause actual results to differ materially. Risks include 1) employment status changes; 2) unforeseen economic or financial issues; 3) changes in strategy that affect the operations of NetBank, Inc. and/or Beacon; and 4) adverse developments in the consumer or investor marketplaces. The company has no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties facing NetBank, Inc., see "Risk Factors" in the company's SEC filings.