The parent company of Veritex Community Bank will acquire a 49% stake in Texas-based mortgage lender Thrive Mortgage, the firms announced late Tuesday afternoon.
Veritex Holdings, which has a long history of making acquisitions, will pay $53.9 million for its piece of Thrive, valuing the Georgetown, Texas-headquartered company at roughly $110 million.
The investment is expected to close in the middle of 2021.
Family-owned Thrive has retail operations in Texas, Ohio, Colorado, Kentucky, North Carolina, Kansas, Virginia, Florida, Maryland and Indiana.
“We are proud to further our relationship with a valued business partner of over seven years,” Roy Jones, chairman and chief executive officer of Thrive, said in a statement. “With a similar culture and alignment of values, Veritex has helped Thrive grow by understanding our business and assisting Thrive with tailored financing, including construction warehouse lending. This expanded partnership, while retaining our nimble operating practices, will allow us to better serve our customers and employees with unequaled products and positions the company for a strong decade of growth.”
How lenders will benefit from Proctor Financial’s acquisition of Loan Protector
HW+ Managing Editor Brena Nath joins Proctor Loan Protector executives Damon Laprade and Mike Dimas to discuss the acquisition and the new brand, Proctor Loan Protector.
Presented by: Proctor Loan Protector
Veritex is one of Texas’ largest banks, with $8.8 billion in assets at the end of 2020. It primarily works with small- and medium-sized businesses. It posted net income of $31.8 million in the first quarter. It’s acquired seven community banks across Texas since 2010, including Bank of Las Colinas, Independent Bank of Texas, Sovereign Bank, Liberty Bank and Green Bank.
“I couldn’t be more excited about our partnership with Thrive,” Veritex Chairman and CEO Malcolm Holland said in a statement. “The breadth of management and experience, coupled with an industry leader in cutting-edge technology, provides a powerful earnings investment to drive consistent shareholder return and mitigates business cycle volatility to our commercial-focused portfolio.”
The investment in Thrive comes amid a wave of M&A activity in the mortgage lending space. Finance of America announced on Tuesday that they planned to acquire Parkside Lending‘s wholesale operation for $40 million.
Other M&A deals in the mortgage lending space of late include Guaranteed Rate‘s acquisitions of Owning and Stearns Lending, Ocwen‘s acquisition of Texas Capital‘s correspondent business, New Residential Investment Corp‘s $1.7 billion purchase of Caliber Home Loans, New York Community Bank‘s pending $2.6 billion acquisition of Flagstar, and Western Alliance‘s $1 billion purchase of AmeriHome.
The post Veritex buys 49% stake in Thrive Mortgage appeared first on HousingWire.