Transnational Buying Texas Cap Mortgage Unit

Transnational Financial Network Inc., a San Francisco-based mortgage banking firm, has announced an agreement to acquire the residential mortgage lending division of Texas Capital Bank NA, Dallas.Under the agreement, Transnational will issue up to three million shares of its common stock, of which more than 1.29 million shares are subject to two earn-out provisions. If the revenues of the division during the 12-month period ending Sept. 30, 2007, are greater than 20% of the $17.06 million of revenues generated by the division in the 12-month period ended Sept. 30, 2006, Transnational will issue an additional 337,355 shares, the company said. If the revenues during the 12-month period ending March 31, 2008, are greater than 60% of the revenues of the preceding 12-month period, Transnational will issue an additional 954,000 shares. The division "has been very successful in originating mortgages, building originations to their present level in three years and developing strong sales and broker service programs," said Joseph Kristul, Transnational's chief executive officer. "[The division] gives us significant geographic diversification beyond California and Arizona, with a deep and solid senior management team."