The owner of a small mortgage lender based in the Lone Star State has disclosed a deal to acquire a savings institution in the state.
A stock purchase agreement announced Wednesday has the sole owner of Mid America Mortgage Inc. acquiring Texas Savings Bank.
Mid America Chairman and Chief Executive Officer Jeff Bode said he reached the agreement with Texas Bancshares Inc. to purchase the Snyder, Texas-based financial institution.
Subject to regulatory approval, the acquisition is expected to be completed by the end of this year.
Once the deal is closed, Mid America will become a wholly owned subsidiary of Texas Savings Bank.
Capital at the acquired institution is expected to exceed $28 million after the transaction is consummated — more than the combined capital of other banks based in Scurry County.
Mid America, which was founded in the 1940s and previously operated as Schmidt Mortgage Co., reports that it originated $1.4 billion in home loans during 2012.
The Addison, Texas-based company’s residential loan servicing portfolio exceeds $1.5 billion, according to the news release.
It is reportedly licensed in 40 states and has a staff that exceeds 300 employees. Headcount is “expanding aggressively.”
A Mid America subsidiary, 1st Tribal Lending, claims to be “the nation’s leading Native American housing lender under the HUD Section 184 Loan Guaranty Program.”
Before assuming his title as president and owner of Mid America in March 2010, Bode was wholesale channel manager at Aegis Mortgage Corp., according to his LinkedIn profile.
