Houston-based nonbank mortgage lender Cornerstone Home Lending announced on Wednesday it has received all regulatory approvals to acquire traditional depository The Roscoe State Bank, a deal that will expand its operations beyond the traditional mortgage business.
Expected to close around Oct. 1, the transaction will create a financial institution called Cornerstone Capital Bank, with more than $380 million in capital and $1.5 billion in assets, the companies claim. The financial terms of the deal were not disclosed.
The bank resulting from the deal will offer mortgage lending and servicing, commercial and retail banking, and institutional banking.
Founded in 1988, Cornerstone Home Lending is licensed to lend in 38 states and the District of Columbia. The lender has roughly 300 mortgage loan officers and 1,800 team members and does in-house processing and underwriting.
According to Inside Mortgage Finance estimates, Cornerstone, independently held, is a top-50 retail mortgage lender. It funded $5.1 billion in loans in the retail channel during the first half of 2022, good for 38th nationwide production volume but down 28.8% compared to the same period in 2021.
The Roscoe State Bank was founded in 1906 with three locations in Texas – Roscoe, Sweetwater and Bastrop. The transaction was first announced in June 2021.
The deal will allow Cornerstone Home Lending to expand the scope of services to customers, complement and diversify the business, and lower our cost of funds, according to Marc Laird, founder, chairman, and CEO of Cornerstone.
“We plan to add seasoned commercial bankers to complement our existing team of mortgage lending professionals and offer more products and services to our customers,” Laird said, according to a news release.
Cornerstone Home Lending had Otteson Shapiro LLP as legal advisor and Scott Almy as a business advisor. For The Roscoe State Bank, Piper Sandler & Co. was the financial advisor and Holland & Knight LLP the legal counsel.
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