First Federal Bank, a community-based mutual bank based in Lake City, Fla., said Wednesday it has entered an agreement with North Dakota-based BNC National Bank to acquire certain assets and liabilities of BNC’s mortgage division.
Terms of the deal, which is expected to close in the second quarter of 2023, were not disclosed. The acquisition is subject to customary closing conditions and regulatory approval, the banks said.
First Federal said the acquisition will extend its customer base into new markets, while adding a nationwide consumer-direct mortgage platform.
Based on the agreement, First Federal will purchase BNC National Bank's mortgage business assets and continue to serve BNC’s mortgage customers from BNC’s existing locations in Overland Park, Kan.; Moline, Ill.; and Bismarck, N.D., as well as in the Phoenix market.
"Our mission is to provide solutions from a financially stable institution that is a great place to work and bank,” said John Medina, First Federal Bank president & CEO. “This acquisition underscores our commitment to our customers and the residential mortgage sector. We look forward to serving the BNC mortgage customers with the same excellence they came to expect from the BNC team."
BNC National Bank's Chairman Michael Vekich also praised the deal, "The Board of Directors made the decision to exit our nationwide residential mortgage origination business after extensive deliberations and concluding that this change in strategy is in the best long-term interests of the BNC, its shareholders and the communities we serve," he said.
First Federal also said it will retain substantially all employees of BNC National Bank's mortgage division.
"We look forward to welcoming the new employees to our residential lending team," said Paul Ottendorf, First Federal Bank’s residential lending division president.
First Federal anticipates the BNC platform will transition to its brand within a few months of the closing, the bank said.
"BNC National Bank's mortgage division team will continue to excel at our core strengths while adding to our product offerings and joining an already amazing First Federal mortgage business," said Doug Brendel, president of mortgage banking at BNC.
First Federal Bank has had a "5-Star, Superior" financial rating from BauerFinancial Inc. of Coral Gables, Fla. for more than two decades. The acquisition of BNC National Bank's mortgage division will enable First Federal to better serve the customers of both organizations by offering additional technology tools and an expanded product offering, the bank said.
First Federal Bank is a community-based bank offering consumer and commercial banking solutions, services, and loans through banking offices in Florida's panhandle, north central and east Florida, and coastal South Carolina. Mortgage, SBA, and USDA customers are served through lending offices across the Southeast and Midwest.
BNCCORP Inc., headquartered in Bismarck, N.D., is a registered bank holding company serving its local markets. The company operates community banking and wealth management businesses in North Dakota and Arizona from 11 locations.
