ST. LOUIS, March 19, 2013 (GLOBE NEWSWIRE) -- Enterprise Bank & Trust, the banking subsidiary of Enterprise Financial Services Corp (Nasdaq:EFSC), announced today a definitive agreement to acquire certain assets of Gorman & Gorman Home Loans, a division of F&M Bank and Trust Company, subject to regulatory approval. Mark Gorman, founder and President of Gorman & Gorman, will join Enterprise as President of the Bank's combined mortgage organization. Also joining Enterprise will be approximately 30 mortgage producers, underwriters and operations staff in St. Louis, Cape Girardeau and Springfield MO.
Scott Goodman, Executive Vice President and head of Enterprise's mortgage, wealth management and fee income divisions, said, "We made a strategic decision to materially expand our mortgage business as a natural extension of our banking and wealth management businesses. Acquiring Gorman & Gorman's production organization and partnering with Mark to lead our companywide mortgage operations will immediately vault Enterprise into a significant market position in St. Louis. This acquisition also provides a strengthened management structure and operating platform to expand our mortgage capabilities in each of our markets. Mark's involvement with the local and state chapters of the Mortgage Bankers Association has established him as a leader in the mortgage industry and we're delighted that he and his team are joining us."
Mark Gorman commented, "Combining our organizations presents a tremendous growth opportunity for Enterprise. Together, we'll have the capacity to deliver a broader product set to clients and expand distribution of those products across the Bank's footprint. In addition, we'll better serve our communities with more residential loan options and products for first-time home buyers and historically underserved markets."
Founded in 1994, Gorman & Gorman has originated more than $2.5 billion in mortgage loans. It consistently ranks among the leading mortgage lenders in St. Louis. In 2010, the firm was acquired by F&M Bank and Trust Company of Hannibal MO.
Terms of the acquisition, which is subject to regulatory approval, were not disclosed. The transaction is not expected to materially affect the Company's 2013 earnings.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.
Readers should note that in addition to the historical information contained herein, this press release contains forward-looking statements, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those contemplated from such statements. We use the words "expect" and "intend" and variations of such words and similar expressions in this communication to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, burdens imposed by federal and state regulations of banks, credit risk, changes in the appraised valuation of real estate securing impaired loans, outcomes of litigation and other contingencies, exposure to local and national economic conditions, risks associated with rapid increase or decrease in prevailing interest rates, effects of mergers and acquisitions, effects of critical accounting policies and judgments, legal and regulatory developments and competition from banks and other financial institutions, as well as other risk factors described in the Company's 2012 Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in light of new information or future events unless required under the federal securities laws.
CONTACT: Jerry Mueller, Senior Vice President (314) 512-7251 Ann Marie Mayuga, AMM Communications (314) 485-9499Source: Enterprise Financial