Impac to Acquire Fidelity Bancorp's Commercial Lending Operations
Impac Mortgage Holdings, Inc. announced today that its subsidiary, Impac Commercial Capital Corporation has entered into a definitive agreement to purchase certain assets, and hire the employees of Fidelity Bancorp Funding, Inc. Terms of the purchase were not disclosed, and Impac said it expects to close the purchase by mid-January. Fidelity specializes in the origination of small-balance commercial and multi-family mortgages with an emphasis on marketing to its nationwide network of approximately 3,000 residential mortgage brokers. With record 2005 annual originations of approximately $1.0 billion, Fidelity employs a staff of approximately 30 employees and has been profitable every year since its inception in 2000. Fidelity's operations will be merged into ICCC. William Sonsma, the sole shareholder of Fidelity, will assume the title of Executive Vice President, Managing Director of Wholesale for ICCC. Terms of Mr. Sonsma's employment agreement includes a base salary, restricted stock grants and monthly incentives based upon production volumes. ICCC originates small-balance multi-family and commercial loans primarily for investment.