A small bank in Oklahoma is being acquired by a mid-sized mortgage banker in the same state. After the deal is done, the lender will become a subsidiary of the financial institution.
An announcement Wednesday from the Stitt Family Trusts, the owners of Gateway Mortgage Group LLC, indicated that it has reached an agreement to acquire more than 85 percent of Farmers Exchange Bank.
Terms of the transaction were not disclosed.
Data from the Federal Deposit Insurance Corp. indicate Farmers Exchange’s total assets stood at $347 million as of March 31 and included $37 million in one-to-four-family residential loans.
The Cherokee, Oklahoma, bank was founded in 1935. There are 33 people on the payroll of Farmers Exchange.
Following the closing of the deal, Jenks, Oklahoma-based Gateway will be merged into the bank — supporting the long-term growth both businesses.
After taking on Gateway’s more than 1,200 employees, Farmers Exchange will become “one of the top five [banks] in Oklahoma by employment and net income,” according to the media release.
“The acquisition will allow the resulting bank to offer clients a broader range of products while lowering costs for financial services,” the statement said. “The resulting bank’s business model will build upon the success of Gateway Mortgage Group, which has become one of the largest privately held mortgage companies in the country.”
The announcement comes just weeks after Gateway disclosed that Stephen Curry was named chief executive officer.
After the merger, which is subject to regulatory approval and certain other customary closing conditions, former FDIC chairman Donald Powell plans to joint the bank’s board of directors.
Gateway reports a mortgage servicing portfolio of $17 billion. It previously reported 2016 originations of $5 billion.
