Unitrin Announces the Sale of Fireside Bank’s Active Loan Portfolio
August 08 2011 - 7:00AM
Business Wire
Unitrin, Inc. (NYSE:UTR) announced today that its subsidiary,
Fireside Bank, has signed a definitive agreement with a subsidiary
of Consumer Portfolio Services, Inc., to sell its active loan
portfolio. Unitrin anticipates that the transaction will close in
the third quarter of 2011, subject to regulatory approvals and the
satisfaction of other customary closing conditions. Terms of the
transaction were not disclosed.
Fireside Bank will service the active loan portfolio for a short
transitional period following the closing. Fireside Bank will
retain its non-active loan portfolio, which is in run-off and
contains approximately $475 million of previously charged-off loans
as of July 31, 2011.
"This sale represents substantial progress in the wind-down of
Fireside Bank and demonstrates continued success in executing our
strategy to allocate capital to our core businesses. We expect that
between $225 million and $250 million of capital will be returned
to Unitrin from Fireside Bank during the fourth quarter and that
ultimately a total of at least $265 million will be returned by the
conclusion of the wind-down process," said Donald Southwell,
Chairman, President and Chief Executive Officer of Unitrin.
Unitrin is a diversified insurance holding company with
subsidiaries that principally provide life, auto, homeowners and
other insurance products for individuals and small businesses.
Unitrin's principal businesses are:
Kemper®1, which provides auto, homeowners and other
insurance products to individuals through a network of independent
agents,
Unitrin Specialty, which provides auto insurance through
a network of independent agents and brokers to individuals and
small businesses which have had difficulty procuring insurance
through traditional channels, usually due to adverse driving
records, claim or credit histories,
Unitrin Direct, which markets auto and homeowners
insurance to consumers via direct mail, the Internet,
employer-sponsored employee benefit programs and other affinity
relationships, and
Life and Health Insurance, which specializes in the sale
of life and health insurance products to individuals through
networks of employee agents and exclusive, independent agents.
Additional information about Unitrin is available by visiting
its website (www.unitrin.com).
1 Kemper® is a registered service mark of Unitrin, Inc.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference
information that includes or is based on forward-looking statements
within the meaning of the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give expectations or forecasts of future events, and can
be identified by the fact that they relate to future actions,
performance or results rather than strictly to historical or
current facts.
Any or all forward-looking statements may turn out to be wrong,
and, accordingly, readers are cautioned not to place undue reliance
on such statements, which speak only as of the date of this press
release. Forward-looking statements involve a number of risks and
uncertainties that are difficult to predict, and are not guarantees
of future performance. Among the general factors that could cause
actual results to differ materially from estimated results are
those listed in periodic reports filed by Unitrin with the
Securities and Exchange Commission (the "SEC"). No assurances can
be given that the results contemplated in any forward-looking
statements will be achieved or will be achieved in any particular
timetable. Unitrin assumes no obligation to publicly correct or
update any forward-looking statements as a result of events or
developments subsequent to the date of this press release. The
reader is advised, however, to consult any further disclosures
Unitrin makes on related subjects in its filings with the SEC.
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