Contact Information: Contacts: Shearson Financial Network, Inc. Las Vegas, Nevada Michael Barron 702-868-7922
Shearson Financial Network, Inc. Doubles Mortgage Banking Capacity
Shearson Financial Network, Inc. and Dollar Mortgage Announce Financial Partnership
| Source: Shearson Financial Network
LAS VEGAS, NV--(Marketwire - June 19, 2007) - Shearson Financial Network (OTCBB : SFNN ), a
consolidator in the highly fragmented mortgage brokerage marketplace,
announced today that it reached an agreement to acquire all of the assets
and operational businesses of Dollar Mortgage Corporation of La Mesa,
California. Under the agreement, Shearson Financial Network will issue to
Dollar's shareholders a combination of cash and stock valued in excess of
one million dollars. The transaction is scheduled to close in June 2007.
Dollar is a fast-growing provider of residential mortgages and is a
licensed mortgage banker in over 40 states. It employs fifty-five people
and is funded through its mortgage bank business, which registered in
excess of $300 million during 2006. Dollar operates 11,000 sq. ft. of
branch office space in La Mesa, California and is primarily a wholesale
lender nationwide. Dollar Mortgage seeks expansion and has looked to
Shearson as a partner to reach new markets.
"We view Shearson Financial Network as an ideal partner in our quest to
expand our operations in the mortgage industry," said Ron Krueger, CEO of
Dollar. "Not only do we share the same vision for the industry, but melding
our complementary management talent, business processes, and geographic
locations into a single operating entity should produce positive tangible
synergy," he added.
"This is an important step in a business combination that both parties hope
will have substantial benefits," stated Michael Barron, CEO and Chairman of
Shearson Financial Network. "As we are able to provide resources to Dollar
to expand its client base, Shearson has a unique opportunity to expand in a
market that has been shrinking. Dollar has been well managed and has
escaped the fate of others during the sub-prime collapse. It is a great
base to build upon."
About Shearson Financial Network
The company is a consolidator of independent mortgage brokerages. Shearson
operates 17,538 sq. ft. of branch office space licensed in 33 states. The
company currently is seeking new branches for its growing network. For more
information, please visit the company's website at www.sfnncorp.com or
www.shearsonhomeloans.com
Shearson Financial Network, Inc. reported net income of $2.8 million for
the year ending December 31, 2006 and the company's operating unit,
Shearson Home Loans, contributed $ 1.6 million to earnings. The value of
Assets held by SFNN increased to $30.6 million for the year ended December
31, 2006 from $4.4 million in 2005, an increase of 590%. Net worth
increased to $6.4 million from $(7.8) million during the same period,
representing an increase of $14.2 million. Revenue from the originations of
loans increased 25% or $1.7 million to $8.5 million Earnings per share for
the year ended December 31, 2006 was $0.02 as compared to a loss per share
of $0.50 from the year ended December 31, 2005.
SEC Filings and Forward-Looking Statements
Statements in this press release other than statements of historical fact,
including statements regarding the company's plans, beliefs, and estimates
as to projected results and market size are "forward-looking statements."
Such statements are subject to certain risks and uncertainties, including
factors listed from time to time in the company's SEC filings, and actual
results could differ materially. These forward-looking statements represent
the company's judgment as of the date of this release. The company
disclaims, however, any intent of obligation to update these
forward-looking statements.