Delta Financial enters retail market with the acquisition of two retail mortgage lenders

Business Wire,  Feb 18, 1997  

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WOODBURY, N.Y., CINCINNATI, OH, WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- Feb. 18, 1997--

- Delta's Loan Servicing Portfolio Surpasses $1 Billion -

Delta Financial Corporation (NYSE: DFC) announced today that it has expanded its operations into the retail origination of non-conforming home equity loans through the acquisition of Cincinnati, Ohio-based Fidelity Mortgage Inc. and West Palm Beach, Florida-based Fidelity Mortgage Associates, Inc. Terms of the stock and cash transactions were not disclosed though Delta indicated that it expected the acquisitions to be accretive to earnings. Separately, Delta also disclosed that its home equity loan servicing portfolio surpassed $1 billion in early February.

On an aggregate basis, the two acquired retail operations currently generate approximately $20 million per month in non- conforming and conforming loan originations. The acquired operations will continue to operate as separate units under the Fidelity Mortgage brand name.

Commenting on the acquisitions, Delta Financial Corporation Chief Executive Officer, Hugh Miller, said, "Through the Fidelity Mortgage operations Delta will diversify its existing base of brokered loan originations and correspondent loan purchases to include retail home equity mortgage originations. In the process of identifying these acquisitions, we analyzed several candidates but the Fidelity operations presented an optimal fit. Importantly, the senior managements of both companies will continue to direct the ongoing growth of their respective operations. The acquisitions also complement our strategy to grow originations in new geographic markets and leverage our existing servicing and underwriting infrastructure."

John P. Grippa, III, President of Fidelity Mortgage Inc., commented, "Through Delta we have access to additional capital to enable us to accelerate the growth of our operations and to increase our base of branch locations. We were impressed by the depth and experience of Delta's management team and believe the investments they have made in state-of-the-art origination and servicing systems will contribute to our ability to expand."

Douglas J. Irvine, President of Fidelity Mortgage Associates, Inc. added, "Delta is an excellent partner that provides additional management expertise, access to capital and operational discipline that should allow us to continue to expand our market penetration."

Fidelity Mortgage Inc. is headquartered in Cincinnati, Ohio and maintains three branch offices in Ohio and one in Indiana. The acquired entity will be called Fidelity Mortgage, Inc. Fidelity Mortgage Associates, Inc. is headquartered in West Palm Beach, FL where it maintains one branch office. The acquired entity will be called Fidelity Mortgage (Florida), Inc.

Delta Financial Corporation is a Woodbury, NY-based specialty consumer finance company engaged in originating, acquiring, selling and servicing non-conforming home equity loans. Delta's loans are primarily secured by first mortgages on one- to four- family residential properties. The Company, which was founded in 1982, originates home equity loans primarily in 21 states through a network of approximately 800 brokers and 180 correspondents as well as through its recently acquired retail operations.

Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under federal securities laws. There are many important factors that could cause Delta Financial Corporation and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the real estate market and mortgage lending activities, competition, demand for Delta Financial Corporation and its subsidiaries' services, availability of funding, loan prepayment rates, delinquency and default rates, changes in factors influencing the loan securitization market and other risks identified in Delta Financial Corporation's Securities and Exchange Commission Filings.

CONTACT: Delta Financial Corporation

Hugh Miller

President

516/364-8500

or

Jaffoni & Collins Incorporated

David C. Collins

212/505-3015 or dccjci@aol.com

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