Church Lender Strongtower Financial Completes $56.3-Million Securitization

FRESNO, Calif. -- Strongtower Financial, a national leader in church and faith-based lending and financial services, announced this week it has completed the securitization of a church mortgage bond portfolio, issuing about $56.3 million in notes backed by mortgage assets. Moody’s Investor Services rated the investment-grade notes as Baa2.

The offering -- STF First Mortgage Bond Trust 2006-A -- is Strongtower Financial’s first-ever securitization and includes a pool of 846 mortgage assets in bonds for 28 churches spanning 15 states. The mortgage assets in the pool are primarily first mortgage bonds whose original proceeds financed the construction of church properties or refinanced existing church properties. Strongtower Financial is one of the largest underwriters of church mortgage bonds in the United States and has provided nearly $1.5 billion in church bond originations to date.

“This securitization is a milestone for Strongtower Financial and the church finance marketplace, as it brings institutional focus to this robust and growing market,” says Chester Reid, president and CEO of Strongtower Financial. “As a pioneer in the $28-billion church finance industry, Strongtower Financial has developed yet another opportunity for investors to participate in this attractive market, while helping churches expand their ministries.”

Columbus, Ohio-based Cornerstone Capital Corp. served as the placement agent for the securitization and Strongtower Financial’s broker-dealer arm was a sub-advisor. Wilmington Trust Company of Wilmington, Del., will serve as the owner trustee and Bank of New York is the indentured trustee.

Strongtower Financial reps say they're already working on a second church mortgage bond securitization, which the company is targeting for close in the first quarter of 2007.

About Strongtower Financial

With headquarters in Fresno, Calif., Strongtower Financial has more than $1.5 billion in church bond originations to date and has worked with thousands of churches, schools and non-profit organizations on their financing needs. Through its financing and consulting services, the company provides mortgage bonds, loans, credit analysis, mutual funds, stewardship campaigns and comprehensive financial planning to non-profit entities and individual investors. Strongtower is also the credit advisor to the Capstone Church Bond Fund. Strongtower Financial is a wholly owned subsidiary of the California Baptist Foundation.

About the Church Finance Market

A report published by Lambert Edwards Analytics (LEA), a leading consulting firm and recognized Christian market expert, sized the nation’s church finance industry at $28 billion. According to LEA, the industry is expected to grow 40 percent during the next five years due to growth in church attendance, proliferation of “mega-churches” and growth in financial contributions to these non-profit organizations.