Commerce Dwelling Mortgage completes Most well-liked Inventory Provide

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Commerce Home Mortgage completes Preferred Stock Offer

IRVINE, California – (BUSINESS WIRE) – Commerce Home Mortgage, LLC (“Commerce”) – one of the largest community development financial institutions in America (“CDFI”) – today announced pricing and completion of a private placement (the “Offer”) for $ 31.5 million. USD known. Perpetual Preferred Equity Units (the “Preferred Equity Units”). The offering brings Commerce’s outstanding preferred equity units to $ 81.5 million. The investors in the Preferred Equity Units include 18 socially responsible banks looking to expand access to capital for low-income borrowers and communities in their market service areas.

The deal will use the net proceeds from the offering to increase lending to black, Latin American, low income, and underbanked borrowers and communities – including those in the Southwest, Midwest, and Southeast. Commerce expects lending to surpass $ 10 billion in 2021 to fuel the community’s mission to lend to the under-banks.

Rev. Everett Bell, Chairman of Commerce’s Community Advisory Board, stated, “We are honored that our platform continues to be an effective tool for socially responsible banks to improve access to capital for minority and low-income communities, often left behind by traditional financial institutions. This additional capital will further strengthen our mission to meet the needs of black, Latin American, low-income, and historically underserved communities across the country. We thank our new partners for participating in our commitment to greater social justice in many of the communities we serve. ”

Steven Sugarman, founder of The Capital Corps, LLC – the CDFI-certified venture fund that acquired Commerce in 2018, added, “We look forward to building our banking partnerships as we expand our lending across America. Commerce’s ability to work with custodians on terms consistent with our investment grade rating validates the hard work of our team, adds to the strength of our business and reinforces our critical mission. We look forward to further expanding our partnerships, services and reach in the new year. ”

The Preferred Equity Units, which are Investment Grade BBB + rated by Egan Jones, have a cumulative preferred yield of 5.00% per annum paid quarterly (subject to an annual adjustment based on the regulatory credit earned by bank investors for the development of the community).

Performance Trust Capital Partners acted as exclusive financial advisor to Commerce and sole placement agent in the offer. Michelman & Robinson, LLP acted as legal advisor to Commerce and Hunton Andrews Kurth LLP acted as legal advisor to Performance Trust on the offer.

About Commerce Home Mortgage, LLC

Founded in 1993, Commerce Home Mortgage is a national mortgage lending company certified by the US Treasury Department and the state of California as a community development financial institution.

For more information: http://www.commercehomemortgage.com/

About the Capital Corps, LLC

The Capital Corps is certified as a community development financial institution by the US Treasury Department and the State of California, and oversees its subsidiaries, including Commerce Home Mortgage.

For more information: http://www.thecapitalcorps.com/

No offer or solicitation

This press release does not constitute an offer to sell, solicitation of an offer to sell, or a solicitation of an offer to buy any securities. In no country in which such offer, solicitation or sale is prior to registration or qualification under securities laws such a court would be unlawful, there is a sale of securities.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements about our expectations, beliefs, plans, predictions, safeguards, projections, goals, assumptions, or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are usually, but not exclusively, identified by the use of forward-looking terminology such as “believes”, “expects”, “could”, “can”, “will”, “should”, “seeks”. likely “” intends “” plans “,” pro forma “,” projects “,” estimates “or” anticipated “or the negative of those words and phrases or similar words or phrases that are predictions or indications of future events or trends This is not just about historical matters. You can also identify forward-looking statements by discussing strategy, plans, or intentions. Forward-looking statements involve numerous risks and uncertainties and should not be relied on as predictions of future events, including the following factors Actual results and future events could cause actual results and future events to differ materially from those set out or contemplated in the forward-looking statements: business and economic conditions in general, and in the financial services industry of banks and non-banks at the national and domestic levels, our local market conditions iete; our ability to mitigate our risks; our ability to maintain our historical earnings trends; our ability to successfully identify and address the risks associated with potential future acquisitions, including integration risks; Changes in management staff; Interest rate risk; Credit risk associated with our credit portfolio; Deterioration in the quality of assets and higher write-downs on loans; Time and effort to liquidate distressed assets; Inaccuracy in the assumptions and estimates we make in establishing provisions for probable credit losses and other estimates and projections; Lack of liquidity; Fluctuations in the fair value and liquidity of the securities we hold for sale; Impairment of securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; increased competition in the banking and non-banking financial services industries at national, regional or local level, which can adversely affect prices and terms; the correctness of our annual financial statements and the related information; System errors or failures to prevent breaches of our network security; the establishment and outcome of litigation and other legal proceedings against or to which we are subject; Changes to federal tax law or tax policy; the effects of recent and future legislative and regulatory changes, including changes in banking, securities, and tax laws and regulations, and their application by our regulators; state monetary and fiscal policy; and increasing our capital requirements.

Forward-looking statements, while representing our beliefs, are not a guarantee of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results could differ materially from those expressed or contemplated in any forward-looking statement. Therefore, you are cautioned not to place undue reliance on such statements. In addition, any forward-looking statement applies only as of the date it is made, and we assume no obligation to update any forward-looking statement to reflect events or circumstances after the date the statement is made or to reflect the event of unexpected events or circumstances, except as required by law is.