Citizens Bank’s acquisition of Franklin American Mortgage is now complete.
The bank’s parent company, Citizens Financial Group, announced this week that the bank’s deal to acquire “certain net assets” of Franklin American Mortgage is finalized.
The deal was originally announced back in May.
At the time, the companies said the deal was valued at $511 million.
According to details provided by the companies at the time, Franklin American manages a servicing portfolio of more than $40 billion and is on track to originate more than $13 billion in mortgages this year, nearly all of which are conforming mortgages.
Citizens said that the deal will triple the size of its off-balance sheet mortgage servicing portfolio and more than double its mortgage origination platform.
As stated above, the addition of Franklin American’s portfolio triples the size of Citizens’ off-balance sheet mortgage servicing portfolio, pushing it from $21.6 billion to approximately $65.3 billion.
The deal brings Citizens’ total servicing portfolio to approximately $83.1 billion including the bank’s existing on-balance sheet mortgage portfolio.
The deal also includes mortgage servicing rights valued at approximately $600 million.
“We are pleased to announce the completion of the Franklin American Mortgage acquisition,” said Brad Conner, Citizens Vice chairman and head of consumer banking.
“We believe this transaction creates tremendous value for Citizens and takes our mortgage business to the next level, expanding our reach and adding immediate scale in servicing as well as innovative correspondent and wholesale solutions,” Conner added. “We welcome our new colleagues from Franklin American Mortgage and we look forward to providing exceptional customer service, along with enhanced products and services to help customers reach their potential.”
According to the companies, Eric Schuppenhauer, Citizens’ president of home mortgage, will lead the combined mortgage business.
Scott Tansil, chief financial officer and chief operating officer of Franklin American Mortgage, will lead the correspondent and wholesale origination businesses that is headquartered in Franklin, Tennessee.
Citizens said that it expects to maintain a “significant” presence in Tennessee and Texas in association with the expanded platform of the newly combined business.