A small bank subsidiary of American Home Mortgage Holdings Inc. is being acquired out of bankruptcy, and the former retail brand of New Century Financial Corp. is looking for a partner. In other mergers and acquisitions news, the merger of two Wisconsin mortgage companies will reportedly create a top-10 lender in the region.
A recent press release indicated American Foundations MortgageBanc Inc. has agreed to acquire Priority Mortgage Corp. Both companies are based in Brookfield, Wis.
American Foundations, a subsidiary of Generations Bancorp Inc., has recently added 20 mortgage bankers. It originates through the Internet, retail originators and mortgage brokers. Priority was previously the mortgage lending arm of First Weber Group. The merger reportedly creates a top-10 mortgage banker for Southeast Wisconsin.
Priority employees are expected to continue in their current roles after the deal is done.
The Bancorp Inc. announced this month that it agreed on April 1 to acquire American Home Bank from American Home Mortgage Holdings Inc. The deal, which was approved by the U.S. Bankruptcy Court for the District of Delaware on May 15, is expected to close in the third quarter and cost between $7 million and $11 million — with a $1 million reduction if it closes by July 31.
The Bancorp said the Office of Thrift Supervision charter will support a national platform.
Two Harbors Investments Corp. has reached an agreement to acquire Capitol Acquisition Corp., a statement Thursday said. Two Harbors is a newly organized real estate investment trust that intends to invest in agency and non-agency residential mortgage-backed securities. It will be managed by PRCM Advisers LLC.
The transaction, expected to be completed by Sept. 30, is subject approval by Capitol Acquisition’s stockholders and warrant holders.
Home123, the former retail brand of failed New Century Financial Corp., announced on June 8 that it is re-launching as a “multiple vertical savings destination.” The Riverwoods, Ill., company had previously been acquired by PBG Financial Services Ltd in partnership with Central States Mortgage Inc. — which collapsed earlier this year.
Home123, a MortgageDaily.com advertiser, noted that $130 million has already been spent on brand development over the years. The firm is seeking a partner for a joint venture with a fully developed integrated marketing platform.
The Federal Reserve Board reported in the Federal Register that applications were received for the following proposed merger transactions.
| Acquirers | Acquisition Target | Regulator | Overview |
| Benjamin W. Lindsey, Benjamin W. Lindsey Jr. | Robinson Bancshares Inc. and subsidiary Bank of Lenox | Federal Reserve Bank of Atlanta | acquire voting shares |
| H.J. Merritt, Ruth D. Merritt, Melanie Williams, Marianne Melton | PeoplesSouth BancShares Inc. and subsidiary PeoplesSouth Bank | Federal Reserve Bank of Atlanta | acquire voting shares |
| Pacific International Bancorp | Center Financial Corp. and subsidiary Center Bank | Federal Reserve Bank of San Francisco | acquire voting shares |
| Jessie Doyle Buffington, Helmut Hans Cawthon, Kenneth Franklin Davis, Clinton Gray Hubbard, Stephen Curtis Klasson, Kimberly Gill Mauer, Laura Hallin Mumber, Matthew Peter Mumber; Delos Harley Yancey III, John Demetrius Xanthos, Andrew Charles Heaner, Wayne Elm Vick, Delos Harley Yancey Jr. | Heritage First Bancshares Inc. and subsidiary Heritage First Bank | Federal Reserve Bank of Atlanta | acquire additional voting shares |
| Pinnacle Bancshares Inc. | Central Bank | Federal Reserve Bank of St. Louis | acquire 100% of voting shares |
| SBW Bancshares Inc. | State Bank of Waterloo | Federal Reserve Bank of St. Louis | become bank-holding company by acquiring 100% of voting shares |
| The Dorothy F. Baggerly Grantor Retained Annuity Trust, Steve Baggerly as Trustee | Panhandle Bancshares Inc. and subsidiary Bank of the Panhandle | Federal Reserve Bank of Kansas | Federal Reserve Bank of Kansas |
| John H. Sykes, Charles Sykes, Katherine Stroker, James Stroker, Karen Taylor | NorthStar Banking Corp. and subsidiary NorthStar Bank | Federal Reserve Bank of Atlanta | acquire additional voting shares |
| Tompkins Financial Corp. | Darien Rowayton Bank | Federal Reserve bank of New York | 6.85% of voting shares to be acquired |
| CBM Florida Holding Co. | Community Bank of Manatee | Federal Reserve Bank of Atlanta | acquire 51% of voting shares |
During its mergers and acquisitions research, MortgageDaily.com, located a news release about Capital One Financial Corp.’s February acquisition of Chevy Chase Bank. The acquisition of the Bethesda, Md.-based bank gave McLean, Va.-based Capital One the “largest branch network in the Washington, D.C., metropolitan area.”
Capital One acquired Louisiana-based Hibernia Corp. in November 2005 in a 4.9 billion stock and cash transaction.
