Adams Bank acquires local mortgage business

Filed under: Banking & Finance |

Adams Bank and Trust’s parent company, ADBANC Inc., has completed the purchase of the Colorado Springs-based Colorado Online Mortgage.

Colorado Online Mortgage was established by Christine Meacham in 1988 under the name of Auer Mortgage.

This is the first purchase of this kind for Adams Bank and Trust, which has 16 branches in Colorado and Nebraska — three of which are in Colorado Springs — and assets of more than $440 million.

“We’ve been trying to put together something like this for a quite a while,” said Ev Covington, regional president for Adams Bank and Trust. “This is even better because this company has already been established for 18 years, and we wanted something with that critical mass, so we could do a lot of mortgages right away.”

Colorado Online Mortgage President Hutch Hutchison said the best aspect of the transaction is that his staff will remain intact, which will enable the company to continue with its business model.

Hutchinson said Colorado Online Mortgage closed $101 million of mortgage loans in 2005 and will continue operating from offices at 7222 Commerce Center Drive.

ACLI seeks status for insurance products

The American Council of Life Insurers wants guaranteed insurance products to be considered as default investment alternatives for use in automatic enrollment plans.

Insurance products are not considered as investment alternatives now, but the ACLI is asking the Department of Labor to include the products under its proposed rules for such investments

ACLI officials said investors, especially those nearing retirement, would prefer a default investment option that provides the kind of certainty inherent in guaranteed insurance products.

The DOL’s proposed rules will provide guidance for the implementation of the automatic enrollment provisions of the Pension Protection Act 2006.

ACLI officials called the failure to include guaranteed insurance products an unacceptable shortcoming and one that must be addressed.

Capital One’s ex-CFO fined $1.8 million

Former Capital One Financial Corp. Chief Financial Officer David Willey has agreed to pay $1.8 million and accept a five-year ban on serving as an officer or director of a public company to settle Securities and Exchange Commission insider trading and fraud charges.

Willey neither admitted nor denied the allegations when he agreed to the fine, the SEC said.

Willey was accused of earning about $3 million in profits based on his knowledge that the Federal Reserve Board was considering downgrading the lender in May 2002.

His wife, Joy Willey, a former vice president at Capital One, also was named in the SEC’s suit.

In 2002, Capital One applied to merge its savings bank and auto finance units, leading to a review by the Federal Reserve.

Before the news became public, Willey sold Capital One shares at more than $61 a share and exercised stock options in his own and his wife’s account.

The SEC said the company’s stock slid about 40 percent when the Federal Reserve’s action became publicly known in July.

Nation’s FDIC banks report record 3Q earnings

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. reported a combined net income of $37.6 billion for the third quarter of 2006.

That’s the second-highest total ever.

The record for industry earnings is $38 billion, reported during the previous quarter.

FDIC officials said the third-quarter earnings represent an 8.6 percent improvement compared to the same period last year. Lower expenses for loan losses, increased net interest income and strong loan growth were cited as reason for the near-record earnings possible.

Preliminary financial results for the third quarter are contained in the FDIC’s latest Quarterly Banking Profile, which was released last week.

They showed that commercial lending growth remained strong and that real estate construction and development loans were among the categories with the largest quarterly increases, accounting for two-thirds of all loan growth during the third quarter.

Residential mortgage loans had their smallest quarterly increase since the fourth quarter of 2003.

Net interest margins continued to narrow, especially at larger financial institutions. The industry’s net interest margin — the difference between what average rate banks earned on their interest-bearing investments and the average rate they paid to fund those investments — declined to a 17-year low during the third quarter.

Margin declines were caused by a flat yield curve, competitive pressures on loan and deposit pricing and institutions’ increased reliance on short-term liabilities to fund asset growth.

AAFCU raises nearly $12,000 for diabetes

Air Academy Federal Credit Union raised more than $11,900 for the Juvenile Diabetes Research Foundation during the foundation’s Walk to Cure event on Sept. 16.

AAFCU employees boasted the largest corporate walk team with 76 walkers.

The credit union was a bronze-level sponsor of the walk and contributed $2,500 and raised $9,435.20 from paper shoe sponsor sales and walker pledges.

All proceeds go toward helping JDRF fund research.

Rob Larimer covers banking and finance for the Colorado Springs Business Journal.