Christopher George, the founder of California-based multichannel mortgage lender CMG Financial, has struck a deal to acquire Greenwoods Financial Group, the owner of Greenwoods State Bank. Financials of the deal were not disclosed.
George will become an indirect wholly owner of a $575 million FDIC-state chartered bank based in Lake Mills, Wisconsin, that offers products for customers, businesses, and wealth management. Founded in 1893, Greenwoods has been challenged by the restrictive monetary policy imposed by the Federal Reserve (Fed) over the past few years.
Meanwhile, CMG Financial, founded in 1993 by George, a former Mortgage Bankers Association (MBA) chairman, has grown via M&A deals and organically. In 2024, it acquired Norcom Mortgage’s retail assets in April. In 2023, the company added Homebridge Financial Services‘ retail division in March and Shamrock Home Loans’ origination team in November.
In the first half of 2024, CMG was the 13th-largest U.S. mortgage lender, producing $11.8 billion in mortgages, up 22% year over year, according to Inside Mortgage Financial.
George aims to assist Greenwoods in expanding the bank’s footprint and market share in Wisconsin and throughout the Midwest. Greenwoods currently has nine locations throughout southern Wisconsin, including Jefferson, Green, Rock, Racine, Walworth and Waukesha counties.
“In today’s high-rate environment, we are excited to bring innovative products and ideas to help address the challenge of creating better access to affordable housing options,” George said in a statement.
Examples of products are a first-lien home equity line of credit (HELOC) linked to a checking account that accelerates mortgage payoff, called All in One Loan, and a crowdfunding platform for down payment called HomeFundIt.
In a statement, Greenwoods said that “this change involves a shift in the bank’s shareholders rather than a purchase or merger by a large corporate entity or another bank. Greenwoods State Bank will be owned by a single individual, pending regulatory approval and board vote.”
Bill McDonald, CEO of Greenwoods Financial Group, and Rob Cera, CEO of Greenwoods State Bank, will continue to lead the companies.
The acquisition, pending shareholder and regulatory approvals, is expected to close in the first quarter of 2025. Sullivan & Cromwell LLP and RSM US LLP served as advisors for George, while Reinhart Boerner Van Deuren, s.c. advised Greenwoods State Bank.
