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Resource Bancshares Mortgage Group and Resource Bancshares Corporation Approve Merger

Strategic Insights

— 1 min read

The merger between Resource Bancshares Mortgage Group, Inc. (RBMG) and Resource Bancshares Corporation has been approved by their stockholders, paving the way for the two companies to combine their operations. The proposed merger, which was first announced in 1997, will result in stockholders of Resource Bancshares Corporation receiving 1.13747 shares of common stock of RBMG for each share held. This strategic move aims to strengthen RBMG's position in the mortgage banking industry and expand its services in the small-ticket equipment lease and commercial mortgage loan markets.

Key Takeaways:

  • The merger between RBMG and Resource Bancshares Corporation will be consummated on December 31, 1997, effectively ending the two companies' separate operations.
  • Pursuant to the merger agreement, stockholders of Resource Bancshares Corporation will receive 1.13747 shares of common stock of RBMG for each share held.
  • The combined entity will engage in the origination and purchase, sale, and servicing of residential mortgage loans through a nationwide network of correspondents, brokers, and retail offices.
  • Resource Bancshares Corporation's financial services, including small-ticket equipment leases and commercial mortgage loans, will contribute to the combined entity's diversified portfolio.
  • Steven F. Herbert, Senior Executive Vice President and Chief Financial Officer of RBMG, will be the primary contact for media inquiries related to the merger.
  • The new entity will have a strengthened presence in the mortgage banking industry, with expanded services in the small-ticket equipment lease and commercial mortgage loan markets.

Statistics:

  • 1.13747: The exchange ratio established for each share of Resource Bancshares Corporation.
  • 1: The ratio of shares of common stock of RBMG that stockholders of Resource Bancshares Corporation will receive for each share held.
  • December 31, 1997: Effective date of the merger, marking the end of RBMG and Resource Bancshares Corporation's separate operations.

Sources:

  • Resource Bancshares Mortgage Group, Inc. /CONTACT: Steven F. Herbert, Senior Executive Vice President and Chief Financial Officer, Resource Bancshares Mortgage Group, Inc., 803-741-3539/ (REMI) CO: Resource Bancshares Mortgage Group, Inc.; Resource Bancshares Corporation ST: South Carolina IN: FIN SU: TNM DR -- CHW001 -- 2320 12/31/97 13:02 EST http://www.prnewswire.com

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