Magazine article American Banker

At Victoria Mortgage, Posnick Branches Out

Magazine article American Banker

At Victoria Mortgage, Posnick Branches Out

Article excerpt

MARK POSNICK is a Brooklyn native who found his way to Dallas by way of Perth Amboy, N.J. Now, he says, he has a love affair with Dallas and intends to stay put.

But just the opposite is true of his Victoria Mortgage Co. The Texas company has just branched out into California with the acquisition of Western Bank Mortgage Corp. from Western Bank of Los Angeles.

And it is looking to spread its wings even further. Mr. Posnick says he is keeping his eyes peeled for acquisition candidates in the Midwest and in the East.

The California deal, which Victoria announced on Aug. 31, was strategic. Mr. Posnick says. While Victoria had been primarily a servicer, he wanted to build a balanced company with strength in originations as well.

"We did not have a production base, and the refinancing waves were eating into the earnings stream of the company," he said. "But it was a tough battle finding origination capacity to offset the runoff. You could have purchased production platforms a few years ago for next to nothing. Now you must pay substantial premiums over book value to get a solid production presence."

Mr. Posnick said the Western Bank deal was attractive because of the good. strategic fit and a management team that complemented Victoria's "without a lot of cultural clashes." He added that other potential deals had fallen through because of management conflicts.

But with Western, the chance to acquire an enthusiastic production team made the deal worth the "full" price Victoria paid, Mr. …

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