BANKINGVeritex buying 49% stake in mortgage lender Thrive
The parent company of Dallas-based Veritex Community Bank is buying a minority stake in a mortgage lender headquartered in Georgetown for $53.9 million in cash.
Veritex Holdings Inc. announced Tuesday that it will acquire a 49% interest in family-owned home lender Thrive Mortgage LLC and will also gain a seat on Thrive’s board of directors.
The deal is expected to close in mid-2021, following regulatory approvals.
Thrive, led by chairman and CEO Roy Jones, is a leader in turning the home financing process into a customer-oriented digital experience, according to Veritex.
Its markets include Texas, Ohio, Colorado, Kentucky, North Carolina, Kansas, Virginia, Florida, Maryland and Indiana.
“I couldn’t be more excited about our partnership with Thrive,” said Veritex chairman and CEO C. Malcolm Holland III in a statement. “The breadth of management and experience, coupled with an industry leader in cutting-edge technology, provides a powerful earnings investment to drive consistent shareholder return and mitigates business cycle volatility to our commercial-focused portfolio.”
State-chartered Veritex is Texas’ 20th largest bank, with $8.8 billion in assets at the end of 2020, according to the Texas Department of Banking. Its main customers are small- and medium-size businesses with less than $30 million in annual revenue, according to a regulatory filing.
Veritex announced the Thrive Mortgage deal as it also reported that its net income totaled $31.8 million for the first quarter, up from $4.1 million in the same period a year ago.
Veritex operates 25 branches and a mortgage office in North Texas, 12 branches in the Houston area and one branch in Louisville, Ky.