Umbrella to Sell Flower Bank

Umbrella Bancorp Inc., Chicago, has announced an agreement to sell all the capital stock of Flower Bank FSB to American Home Mortgage Investment Corp. for $16.25 million in cash.The purchase price is subject to adjustment in certain circumstances, Umbrella said. Under the agreement, Umbrella said it will use approximately $13.2 million of the proceeds from the transaction to redeem the outstanding 11% capital securities of Argo Capital Trust Co. After the deal is completed, Umbrella said it plans to engage in the mortgage banking business, acquire strategic positions in other financial institutions, and develop a corporate restructuring and workout group to assist other entities. Flower Bank is a wholly owned subsidiary of Umbrella. American Home is a real estate investment trust based in Melville, N.Y., that focuses on investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans that its subsidiaries originate and service. American Home can be found online at http://www.americanhm.com.