American Business Financial Services Files Form 8-K With Securities and Exchange Commission.Business Editors BALA CYNWYD, Pa.--(BUSINESS WIRE)--Sept. 27, 2000 American Business Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABFI) a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services company operating throughout the United States, today announced that it will be filing its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and reporting fiscal 2000 earnings within 15 days of September 28, 2000 as provided by the Securities and Exchange Commission's rules. The delay in filing the Form 10-K is the result of the Company being unable to obtain the information necessary to complete the evaluation of the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain assets at this time. The Company anticipates recording a write-down of its interest-only strips as a result of a contemplated change in the discount rate used to value the interest-only strips. The adjustment to the carrying value of the interest-only strips will be recorded as an expense and the Company believes it will have a loss for the fourth quarter of fiscal 2000. ABFI believes that this valuation adjustment will allow it to realize higher accretion income in the future. The decision to use a higher discount rate was made in light of a period of sustained higher interest rates and other external forces, and not because of any deterioration in the asset quality of the loan-servicing portfolio. The Company expects to report the impact of the adjustment along with complete financial reporting for fiscal 2000 on or before October 13, 2000. The Company also filed a Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. regarding this matter with the SEC. American Business Financial Services, Inc. is a diversified financial services company which provides business loans and first and second home equity mortgage loans. The Company offers its products and services to consumers and businesses nationwide. For further information, contact Albert W. Mandia, Executive Vice President and CFO See Chief Financial Officer. , 610-617-4939, Keith Bratz, VP-Corporate Communications, 610-617-7475, or David R. Evanson, Gregory FCA FCA Abbreviation for the Free Carrier Communications, 610-649-3604. 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 American Business Financial Services, Inc. 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 American Business Financial Services, Inc. and its subsidiaries' services, availability of funding, loan payment rates, delinquency and default rates, changes in factors influencing the loan securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. market and other risks identified in American Business Financial Services, Inc.'s Securities and Exchange Commission filings. |
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