Approved Financial Corp. Reports a Profit for Third Quarter of 2001

Business Wire, Nov 15, 2001

Business Editors

VIRGINIA BEACH, Va.--(BUSINESS WIRE)--Nov. 15, 2001

Approved Financial Corp. (OTCBB:APFN) reports net income for the three months ended September 30, 2001 of $0.05 million or $0.01 per share compared to a net loss of ($1.2) million or ($.23) per share for the three months ended September 30, 2000.

For the nine month period ended September 30, 2001, a net loss of ($0.4) million or ($.07) per share is reported compared to a net loss of ($2.1) million or ($.38) for the same period in the year 2000.

The net income for the nine month period ended September 30, 2001 is net of approximately $1.0 million in charges to income related to the elimination of goodwill and the loss on disposition of premises and equipment. Excluding these charges the pre tax income for the nine month period ended September 30, 2001 was $0.4 million or $0.05 per share compared to the reported pre tax loss of ($ 0.6 million) and ($0.07) per share.

Approved Financial Corp. is a Virginia corporation and through its wholly owned subsidiary, Approved Federal Savings Bank primarily operates in the consumer finance business of originating, servicing and selling residential mortgage loans secured by first and subordinated liens on one-to-four family residential properties. The Company sources mortgage loans through a network of mortgage brokers and an internal sales staff that originates mortgages directly with borrowers.

This press release is not a comprehensive disclosure of our current or future operations. We recommend that investors refer to the quarterly, Form 10Q, and annual, Form 10K, reports as filed with the Securities and Exchange Commission ("SEC"). Links to our current and historical SEC filings and Press Releases are available at http://www.businesswire.com/cnn/apfn.shtml. Copies of our SEC filings are available by mail upon request to: Approved Financial Corp. 1716 Corporate Landing Parkway, Virginia Beach, Va. 23454. Attention: Investor Relations Department.

MORTGAGE LOAN ORIGINATION VOLUME

The following table shows the loan originations in dollars and units for our wholesale (sourced by referral from mortgage brokers) and retail divisions for the nine months ended September 30, 2001 and 2000. The retail originations include loans that are funded through other lenders ("brokered loans"). Brokered loans consist primarily of non-conforming mortgages that do not meet our underwriting criteria. All loans are 1-4 family residential mortgages.