CAMPBELL, Calif., April 7, 2004 (PRIMEZONE) -- Silverado Financial, Inc. (OTCBB:SLVO) announced today that it has opened a new branch office and relocated its corporate offices to 5976 W. Las Positas Blvd. in Pleasanton, California.
In March, Silverado created its own telemarketing division, which has resulted in:
-- Internally generated new loan applications, which reduces
the cost of purchasing leads;
-- More new loan leads than Loan Advisors to service them;
-- Adding ten more Loan Advisors to the Pleasanton office;
-- Needing more office space in Campbell when the lease is
up in October of this year, while adding up to ten new
Loan Advisors to the Campbell office.
Additionally, Silverado has signed a strategic partnership agreement with Richard J. Hudak Financial to handle the Company's commercial real estate and business lending activities. The partnership is expected to increase revenue by creating an outlet for loans not currently being offered by Silverado. Silverado will participate in both the up-front application fees as well as the brokerage fees.
Finally, Silverado has completed its application for a warehouse line of credit to become a direct lender. "We are expecting to be approved for a $2-4 million dollar warehouse line, which represents a major milestone in the overall business plan," as stated by John Hartman, President and CEO of Silverado Financial. Typical brokerage commissions represent approximately 1% of the loan amount, however, with the addition of a warehouse line Silverado expects to capture up to 3% per loan, subsequently representing a 100-200% increase in fees generated. Silverado anticipates earning between $6,000-$9,000 per loan based upon an average home loan amount in the San Francisco Bay Area of $300,000.
Silverado is seeking accretive acquisitions of established, profitable mortgage brokerages in Northern California to provide greater distribution of its loan products and services. For more information go to our website at: www.silveradofinancial.com, or call Sean Radetich at (925) 227-1500.
Forward Looking Statements
This Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "plan," "expect," or similar expressions, and are subject to numerous known and unknown risks and uncertainties. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this Release, including the above matters and in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.