BNCCORP, Inc. announced its wholly owned subsidiary, BNC National Bank, entered into a definitive agreement with First Federal Bank under which First Federal will purchase certain operating assets and assume certain liabilities from BNC’s mortgage division as part of BNC’s decision to exit the residential mortgage origination business. BNC Bank's mortgage division is principally composed of its Overland Park, Kan.-based nationwide consumer direct mortgage platform.
Terms of the deal, which is expected to close in the second quarter of 2023, were not disclosed. The acquisition is subject to customary closing conditions and regulatory approval, the banks said.
As a result of the transaction, First Federal will continue mortgage origination activities in the Overland Park, Kan., Moline, Ill., Bismarck, N.D., and Glendale, Ariz., regions currently served by BNC Bank.
“The board of directors made the decision to exit our nationwide residential mortgage origination business after extensive deliberations and concluding that this change in strategy is in the best long-term interests of BNC Bank, BNCC’s shareholders, and the communities we serve,” BNC Chair Michael Vekich said in a press release.
“Our mission is to provide solutions from a financially stable institution that is a great place to work and bank,” First Federal President and CEO John Medina said. “This acquisition underscores our commitment to our customers and the residential mortgage sector. We look forward to serving the BNC mortgage customers with the same excellence they came to expect from the BNC team.”
First Federal stated it anticipates retention of substantially all employees of the BNC National Bank's mortgage division team. “We look forward to welcoming the new employees to our residential lending team,” BNC Mortgage Division President Paul Ottendorf said.
After the sale, BNC Bank will continue to arrange or facilitate residential mortgage loans for its bank and wealth management customers as part of its full range of banking services.