Utah-based Capital Community Bank (CCBank) has struck a deal to acquire Security Home Mortgage (SHM), which will become an independent subsidiary division of the bank, the parties announced on Friday. The financials of the deal were not disclosed.
According to the Nationwide Multistate Licensing System (NMLS), SHM provides home mortgage solutions in six states through a network of four branches and 62 licensed loan officers. Mortgage tech platform Modex shows the lender originated about $250 million in mortgages in 2023, compared to about $422 million the previous year.
Meanwhile, according to the same data sources, CCBank has only 10 licensed LOs and originated only $7.5 million in mortgages last year, mainly for building and construction.
“CCBank and Security Home Mortgage are well-established Utah companies, and this partnership enables us to strengthen our market position to continue delivering industry-leading financial products,” Matt Field, CC Bank’s president and chief financial officer, said in a prepared statement.
Industry veteran Jon Chamberlain, who founded SHM in 1999 and has led the mortgage lender as its president, said the transaction will “enhance product and service offerings.“ Chamberlain and Charlie Green, who became a co-owner and vice president in 2006, will keep their leadership positions
“This acquisition will be seamless for all involved, and we expect no impact on SHM’s customers or personnel,“ Field added.
CCBank, founded in 1993, had nearly $871 million in total assets and $127 million in equity capital at the end of 2023. It has branch offices in the Utah cities of Salem, Provo, Orem, Pleasant Grove, Sandy and St. George.
The deal is the latest in a challenging mortgage origination market as interest rates are expected to stay higher for longer.
Last week, California-based Mountain West Financial sold its retail assets to competitor ML Mortgage Corp. Earlier in the year, CrossCountry Mortgage acquired Amcap Home Loans, Guild Mortgage struck an agreement with Academy Mortgage, and New American Funding (NAF) nabbed Draper & Kramer Mortgage Corp. Last month, CMG Financial acquired Norcom Mortgage’s retail assets.
