AGF to Buy Wilmington Finance

An agreement has been reached to sell Wilmington Finance Inc., a nonconforming mortgage originator based in Plymouth Meeting, Pa., to American General Finance Inc., Evansville, Ind.Wilmington Finance is a joint venture between thrift holding company WSFS Financial Corp., Wilmington, Del. -- which owns 80% -- and the company's management. The terms of the transaction were not fully disclosed, but WSFS said its share of transaction proceeds should be around $78 million. For the 12 months ended Sept. 30, Wilmington Finance added $8.1 million ($0.86 per share) to WSFS's bottom line. While the unit is profitable, Marvin N. Schoenhals, chairman and president of WSFS, said the holding company decided to focus its resources and capital on its core community bank in and around Delaware. AGF is a subsidiary of American International Group Inc., New York, the parent company of United Guaranty Corp., the Greensboro, N.C.-based mortgage insurer.