Republic First Bancorp, the parent company of Republic Bank, announced Tuesday that the Philadelphia-based bank acquired is planning to expand into mortgage lending with the acquisition of Oak Mortgage Company.
Oak Mortgage, a residential mortgage company headquartered in Marlton, New Jersey, closed more than $330 million in mortgage loans in 2015, according to data provided by the company.
According to Republic Bank, Oak Mortgage’s services are a “perfect complement” to the bank’s current operations. Under the terms of deal, Oak Mortgage will maintain its current business model and operate as a wholly owned subsidiary of Republic Bank.
“Oak Mortgage embodies our core values of absolute convenience and fanatical customer service,” Harry Madonna, chairman and chief executive officer of Republic First Bancorp, said. “So they were a natural fit for our growth strategy in the southeastern Pennsylvania and southern New Jersey market.”
With the “financial strength” of Republic Bank behind it, Oak Mortgage will now work to expand its product offerings and grow its business, the company said.
“This marks an exciting new beginning for Oak Mortgage and we are thrilled to join the Republic Bank family,” said Bill Gelernt, president and founder of Oak Mortgage.
“Our employees have worked diligently over the past two decades to build one of the top mortgage companies in this region,” Gelernt continued. “As we now become part of Republic Bank, opportunities to expand our business and enhance our brand will grow dramatically.”
Republic Bank said that the acquisition of Oak Mortgage will serve both current and new customers well.
“Anyone that visits a Republic Bank store will now have direct and immediate access to an experienced residential mortgage lender and all customers of Oak mortgage will have full access to the products and services of one of the fastest growing financial institutions in the Philadelphia region,” Republic Bank said in a statement.
The completion of the deal is subject to customary closing conditions, including regulatory approval, which has been received, Republic Bank said.
The deal is expected to close on or before August 1, 2016, the companies said.