First Merchants Acceptance provides first quarter outlook.DEERFIELD, Ill.--(BUSINESS WIRE)--March 20, 1997--First Merchants Acceptance Corp., (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 : FMAC FMAC Find, Meet, Attract, Close FMAC Financial and Management Accounting Committee FMAC Fédération Mondiale des Anciens Combattants (French: World Veterans Federation) FMAC FEMA Map Assistance Center FMAC FPGA Mission Assurance Center ), said today that it expects to report a "break-even" first quarter of 1997, below consensus market expectations of $0.41 per share. Mitchell Mitchell, city (1990 pop. 13,798), seat of Davison co., SE S.Dak.; inc. 1881. Mitchell is a trade, distribution, and shipping center for a dairy and livestock area. C. Kahn, president and chief executive officer, cited several major factors which will adversely impact the current quarter: although smaller than the fourth quarter of 1996, loan loss provisions in the current quarter were higher than normal as the company continued to aggressively address the problem loans identified in the fourth quarter of 1996; the pre-funding of a portion of the most recent asset-backed transaction removed earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin from the balance sheet earlier than would have been the case without the pre-funding; and there was a decline in the gain on sale from 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. , primarily due to a smaller transaction size. Kahn also noted that the current quarter will be impacted by flat loan volume as a result of the company's increased emphasis on credit quality. "While we are obviously disappointed with the prospect of a break-even quarter, we are encouraged that by continuing to aggressively address the problem loans identified in the fourth quarter of 1996, we are putting the problems behind us and expect the fundamentals of our business to remain on plan," said Kahn. First Merchants is a national specialty finance company, primarily engaged in financing the purchase of used automobiles by consumers who have limited access to traditional sources of credit. The company acquires dealer-originated retail installment contracts installment contract n. an agreement in which payments of money, delivery of goods or performance of services are to be made in a series of payments, deliveries or performances, usually on specific dates or upon certain happenings. from franchised and independent automobile dealers and financial institutions in 37 states. CONTACTS: First Merchants Acceptance Norman Smagley 847/267-8777 or Amen & Associates Larry Parnell 212/448-4257 |
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