OVERLAND PARK, Kan., Apr 04, 2008 (BUSINESS WIRE) -- Brooke Credit Corporation d/b/a/Aleritas Capital Corp. (OTCBB: BRCR; BRCRW; BRCRU) ("Aleritas"), announced today that it appointed industry veteran and Aleritas co-founder Robert D. Orr as Chairman and Chief Executive Officer, and named veteran lender and insurance executive Michael S. Hess as Aleritas' President. Aleritas' former President and Chief Executive Officer, Michael ("Mick") S. Lowry, and its former Chairman and Chief Operating Officer, Anita F. Larson, have negotiated new employment agreements with Aleritas and remain as senior vice presidents.
In conjunction with the management expansion, the company announced that it has appointed Messrs. Orr and Hess to Aleritas' Board of Directors, and also announced the resignation of Stuart I. Greenbaum and Michael C. Azar from its Board of Directors. The Company's current Board of Directors consists of Michael Lowry, Anita Larson, Lindsay Olsen, Barbara Davison, Robert Orr and Michael Hess. The company intends to add additional independent directors during the second quarter.
In their new roles, Mr. Lowry and Ms. Larson remain key members of the company's management team. Mr. Lowry is responsible for institutional relationships, and Ms. Larson leads the legal and collateral preservation teams. Senior vice president Branden D. Banks is responsible for community bank relationships.
"I am excited about assuming this new role at Aleritas, and view this as adding depth and strength to an already solid management team. I look forward to working with Mike, Mick, Anita and Branden in continuing to serve our customers, address our challenges, and expand our business," Mr. Orr stated. "Aleritas' significant growth and expansion over the last several years has provided a foundation to drive long-term value for our customers, partners, shareholders and employees. It is the intention of our expanded management team to work together to ensure this value is created."
Aleritas' equity at year end was $116,995,000 and its assets were $273,374,000, resulting in a capital to asset ratio of 42.8 percent. Aleritas' loan origination platform has generated a compound annual growth rate of 58 percent between 2001 and 2007, with a balance of $678.2 million at December 31, 2007.
"Given the current uncertainty in the credit markets, it became apparent that Aleritas needed to diversify and refocus our senior management team's responsibilities. We identified those areas in which each member could make the most pronounced contribution," continued Mr. Orr. "Mick and Anita's expertise in lending to local business owners in the insurance and death care industries remain important to our company. Mike and I have battle scars from previous credit crunches and believe that our experience will be a great asset to Aleritas."
Mike Hess added, "Community banks have been key sources of funding since I first started the Aleritas network many years ago and will assume even greater importance for the foreseeable future. We believe that accessing this bank network will allow Aleritas to grow in 2008, albeit at a slower pace than originally anticipated. As a result, we expect to grow but do not currently expect to reach our previously announced goal of $1 billion in loan portfolio balances this year."
Mr. Orr, 54, is the founder of Brooke Corporation (an affiliate of Aleritas and its majority shareholder), has served as a director of Brooke Corporation since its inception in 1986, and was its Chief Executive Officer from 1986 until October 2007. Previously, he was Brooke Corporation's President from 1986 until 1991 and has been its Chairman of the Board since 1991. Prior to focusing his full time at Brooke Corporation, Mr. Orr served as President of Farmers State Bank, Phillipsburg, Kansas, Chairman of the Board of Brooke State Bank, Jewell, Kansas, President of First National Bank, Smith Center, Kansas, and was a self-employed insurance agent for American Family Insurance Company.
Mr. Hess, 52, has served as a director and Vice Chairman of Brooke Capital Corporation, an affiliate of the Company, since January 31, 2007 and as President of Brooke Capital Advisors, Inc., its wholly-owned subsidiary, since January 1, 2007. He was an original investor in Brooke Corporation and served on its Board of Directors from 1990 until January 2005, as its President from 1996 until 2003, and as its Vice President from 1988 until 1996. From its acquisition by Brooke Corporation in 2002 until January 2007, Mr. Hess was president and a director of CJD & Associates, L.L.C., a wholesale insurance broker that later also began providing loan brokerage and consulting services to managing general agencies and funeral homes.
About the Company... Aleritas Capital Corp. is a specialty finance company that originates loans to insurance agencies and related businesses. Loans have been mostly sold as individual loans to participating lenders or as pooled loans to investors through asset-backed securitizations.
This press release contains forward-looking statements. All forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: the uncertainty that the Company will achieve its short-term and long-term profitability and growth goals, uncertainties associated with market acceptance of and demand for the Company's products and services, the impact of competitive products and pricing, the dependence on third-party suppliers and their pricing, its ability to meet product demand, the availability of funding sources, the exposure to market risks, uncertainties associated with the development of technology, changes in the law and in economic, political and regulatory environments, changes in management, the dependence on intellectual property rights, the effectiveness of internal controls, and risks and factors described from time to time in reports and registration statements filed by the Company with the Securities and Exchange Commission. A more complete description of the Company's business is provided in the Company's reports and registration statements, which are available from the Company without charge at www.aleritascapital.com
or at www.sec.gov.
Contact Info:
The Equity Group Inc.
Adam Prior, Vice President
212-836-9606
aprior@equityny.com
or
Media Inquiries:
Aleritas Capital
Jeff Wallace, 913-323-9214
jeff.wallace@aleritascapital.com