BrandMortgage, a mortgage lender that operates in the Southeast, will soon have a new majority owner and a new name after the company agreed to sell majority interest to Capital City Bank.
The mortgage lender, which operates in Alabama, Georgia, Florida, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and Washington D.C., reached an agreement this week to sell to Capital City.
Under the terms of the agreement, Capital City will acquire 51% of BrandMortgage. Upon completion of the deal, the company will offer loans under the name Capital City Home Loans.
According to the companies, BrandMortgage operates 21 mortgage production offices in the above-mentioned states, which will be added into the Capital City fold upon the deal’s completion.
Capital City, which was founded in 1895 and is headquartered in Tallahassee, Florida, provides banking services in 26 counties in Florida, Georgia and Alabama.
In a release, the companies state that uniting Capital City Bank’s 57 full-service banking offices with BrandMortgage’s 21 locations will “expand the availability of mortgage services throughout the Southeast.”
The details provided by the companies indicate that Capital City is seeking to expand its mortgage business, as BrandMortgage’s originations significantly exceed its own.
According to the companies, if the deal had been completed in 2019, the mortgage volume of the combined company would have been approximately triple Capital City’s historical level of originations.
“We are pleased to welcome the BrandMortgage team to the Capital City Bank family,” said William Smith, Capital City Bank Group chairman, president, and CEO.
“We believe this transaction leverages our strengths as an established and profitable financial institution with a 125-year community banking tradition and BrandMortgage’s as an innovator and pacesetter in the mortgage lending industry, which will deliver enhanced value to our clients in both existing and new markets,” Smith added.
BrandMortgage is headquartered in Lawrenceville, Georgia and is led by CEO and Managing Partner Greg Shumate, and President and Managing Partner Alex Koutouzis,
Under the terms of the deal, Shumate will be elected as an officer of Capital City Bank, and BrandMortgage will continue to operate independently from its headquarters under the leadership of Shumate and Koutouzis.
“Joining with an established financial institution like Capital City Bank, with their strong brand reputation and capital position, makes sense for a number of reasons,” Shumate said.
“Not only do our companies share a vision and value system that prioritizes the client relationship and aims to deliver extraordinary service experiences, we also have deep roots in our respective communities to build upon as our partnership grows,” Shumate added. “Together we will leverage each other’s strengths to accelerate growth and capitalize on market opportunities that benefit our clients, communities and shareowners.”
The companies expect the deal to close in the first quarter of 2020. Financial terms of the deal were not disclosed.