Cornerstone Home Lending purchases the $ 212.6 million assets of Roscoe State Bank in Roscoe, Texas.
Cornerstone, of Houston, did not say when he expects the deal to be done or how much he has agreed to pay for Roscoe State Bank, which first opened in 1906.
Owning a bank will allow the mortgage lender “to significantly expand their product and service offerings to our hundreds of thousands of clients and referral sources across the country,” said Marc Laird, Founder, President and CEO of Cornerstone, in a press release issued on Monday.
Cornerstone has helped finance more than 430,000 mortgages since its launch in 1988. The combined company will have $ 2 billion in assets and $ 300 million in equity, according to Cornerstone.
Roscoe State Bank operates three branches in Roscoe, Sweetwater and Bastrop, near Austin. Chairman and CEO John Jay will join Cornerstone’s board of directors and play an active role in its operations.
“I believe [Cornerstone is] the perfect fit for our bank as we combine two family organizations that share a similar culture and a commitment to building long-term relationships, ”Jay said in the statement. Jay’s family has owned Roscoe State Bank since 1976.
A mortgage company acquiring a community bank is by no means unknown. DLP Capital Immobilier announced plans to acquire a $ 98 million Sunnyside Bancorp asset in Irvington, New York for $ 12 million in March. Gateway Mortgage Group in Tulsa, Oklahoma acquired $ 314 million in Farmers Exchange Bank in Cherokee, Oklahoma in May 2019.