Virginia Partners Bank, a community bank that has operations in Maryland and Virginia, will soon acquire a majority interest in Johnson Mortgage Company, a residential mortgage company headquartered in Newport News, Virginia.
Upon completion of the deal, Virginia Partners will own 51% of Johnson Mortgage.
Johnson Mortgage will continue to operate its locations in Newport News and Williamsburg, and will co-locate with Virginia Partners Bank in its Salem Church branch in Fredericksburg.
Virginia Partners will redirect its secondary market loan production through Johnson Mortgage, and will then focus its mortgage production activities around its portfolio loan program under the leadership of Robin Huddle, senior vice president.
Virginia Partners Bank and Johnson Mortgage plan to open shared offices in the Virginia Partners’ existing La Plata and Annapolis, Maryland offices.
The companies say that the partnership will boost both of their operations.
“We have been looking for a scalable solution to delivering a full array of secondary market financing to our customers,” Lloyd Harrison, president & CEO of Virginia Partners Bank, said.
“Johnson Mortgage brings that scalability to us by co-locating in our offices. This allows the bank to focus on portfolio loans,” Harrison said. “At the same time, we will be able to bring our community bank based approach to construction loans, bridge loans, and portfolio loans to clients of Johnson Mortgage.”
Allen Barber, president of Johnson Mortgage, shared Harrison’s sentiments.
“The two companies share a common vision of community banking and mortgage financing,” Barber said. “Virginia Partners Bank serves very attractive markets and we are excited to be able to partner with them.”
The deal takes effect on Jan. 1, 2018. The companies did not disclose the financial particulars.