Veritex Bank Spends $ 53 Million on 49% Stake in Georgetown Mortgage Lender
Dallas-based parent company Veritex Community Bank is buying a minority stake in a Georgetown-headquartered mortgage lender for $ 53.9 million in cash.
Veritex Holdings Inc. announced the agreement with Thrive Mortgage LLC on Tuesday. He will acquire a 49% stake in the family mortgage lender and secure a seat on Thrive’s board of directors.
The deal is expected to close in mid-2021, following regulatory approvals.
Thrive, led by Chairman and CEO Roy Jones, is a leader in transforming the real estate finance process into a customer-centric digital experience, according to Veritex. Its markets include Texas, Ohio, Colorado, Kentucky, North Carolina, Kansas, Virginia, Florida, Maryland, and Indiana.
“I couldn’t be more excited about our partnership with Thrive,” Veritex President and CEO C. Malcolm Holland III said in a statement. “The breadth of management and experience, coupled with an industry leader in advanced technology, provides a powerful investment in earnings to generate consistent return for shareholders and mitigate the volatility of the business cycle.” of our trade-focused portfolio. ”
State-chartered Veritex is the 20th largest bank in Texas, with $ 8.8 billion in assets at the end of 2020, according to the Texas Department of Banking. Its main customers are small and medium-sized businesses with annual sales of less than $ 30 million, according to a regulatory filing.
Veritex announced the Thrive Mortgage deal as it also released quarterly results for the first three months of this year. Its net income totaled $ 31.8 million for the three-month period, up from $ 4.1 million in the same period a year ago.
“Our loans and deposits growth remains good, credit trends are improving and our balance sheet is strong,” said Holland.
Since 2010, Veritex has made seven bank acquisitions to increase its market share in Dallas-Fort Worth and Houston. These acquisitions included Green Bank, Liberty Bank, Sovereign Bank, Independent Bank of Texas and Bank of Las Colinas.
It operates 25 branches and a mortgage office in North Texas, 12 branches in the Houston area, and one branch in Louisville, Ky.