Will become 11th largest bank in Colorado and be known as MSF Bank
Mortgage Solutions of Colorado, LLC d/b/a Mortgage Solutions Financial and First American Bancorp announced Jan. 5 that they have entered into a definitive merger agreement whereby Mortgage Solutions Financial will acquire First American State Bank.
Mortgage Solutions Financial will be the surviving entity and will change its name to MSF Bank. First American State Bank will continue doing business under that name in its Greenwood Village location. The merger is subject to approval by federal and state regulators and by the shareholders of First American Bancorp, First American State Bank’s parent company.
Headquartered in Colorado Springs, Mortgage Solutions Financial is a national mortgage lender with nearly 60 branches operating in over 45 states with approximately 600 employees. It consistently ranks among the top five independent mortgage lenders in the United States for VA loan production—a fitting accolade for a company founded by Air Force veteran Roy Clennan.
“I’ve worked in the mortgage industry since 1992 and am excited by the prospect of acquiring a bank charter. Becoming a bank will help us expand financial product offerings to our borrowers,” says Clennan.
First American State Bank was founded in 1995 by Jay Davidson. It is a single location Colorado banking corporation with $260 million in assets.
“We’ve worked hard to build First American State Bank on a solid foundation of talented employees and valued clients. This partnership with Mortgage Solutions Financial represents an exciting new chapter for all of us, made possible by the hard work and dedication of the entire First American State Bank team,” says Davidson.
After the Merger is complete, MSF Bank would have assets of approximately $750 million, which would make it the 11th largest community bank in Colorado based on asset size.
First American State Bank’s current President and COO, Scott Yeoman, will serve as MSF Bank’s Chief Executive Officer. He has extensive experience in the banking industry in assisting high-performance teams and focused banking business strategies.
Following the Merger, MSF Bank will continue to operate its residential mortgage division in Colorado Springs under the direction of Mortgage Solutions Financial’s current President, Rob Clennan, who will become MSF Bank’s Executive Vice President, Mortgage Division. The commercial loan division of MSF Bank will remain at First American State Bank’s Greenwood Village branch and will be managed by David Korn, who has been with First American State Bank since 2008.
Terms of the transaction have not been announced. First American Bancorp shareholders will receive more information regarding the proposed transaction and the forthcoming special shareholders meeting in the near future.
In connection with the transaction, Otteson Shapiro LLP served as legal counsel to Mortgage Solutions Financial. Piper Sandler & Co. served as financial advisor and Lewis Roca Rothgerber Christie LLP served as legal counsel to First American State Bank and First American Bancorp.
Forward Looking Statements
Certain statements contained in this press release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are typically identified by the use in the statements of words such as “aim”, “anticipate”, “estimate” or “expect” and similar words and phrases indicating that the statement addresses some future result, occurrence, plan or objective. The forward-looking statements that Mortgage Solutions Financial makes are based on our current expectations and assumptions regarding Mortgage Solutions Financial’s business, the economy, and other future conditions. Because forward- looking statements relate to future results and occurrences, they are subject to inherent uncertainties and risks that are difficult to predict. Many possible events or factors could affect Mortgage Solutions Financial’s future financial results and performance and could cause those results or performance to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, among others: the possibility that the anticipated benefits of the Merger are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where First American State Bank and Mortgage Solutions Financial do business, the possibility that the Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management’s attention from ongoing business operations and opportunities, potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger and Mortgage Solutions Financial’s ability to complete the integration of First American State Bank successfully. Mortgage Solutions Financial disclaims any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.
For additional information about the merger or Mortgage Solutions Financial, contact Bobbie Collins at bobbie.
collins@mortgagesolutions.net.
For information about First American State Bank, contact Jay Davidson at jdavidson@fasbank.com.