It wraps up acquisition, creates bigger and diversified banking portfolio
Cornerstone Home Lending has got bigger after securing a significant deal with The Roscoe State Bank.
The mortgage lender announced Monday that it had successfully acquired and merged with the Texas-based bank. The move results in the formation of Cornerstone Capital Bank, which will hold more than $380 million in regulatory capital and greater than $1.5 billion in assets. The combined company will operate in three business segments: mortgage lending and servicing, commercial and retail banking, and institutional banking.
Cornerstone Capital Bank will continue to operate its residential mortgage operations under the “Cornerstone Home Lending” brand. However, the combined firm will continue to use the “Roscoe” name in Nolan County and Bastrop County, Texas markets, and as “Cornerstone Capital Bank” in metropolitan Texas and digital markets.
“This exciting transaction allows us to provide more comprehensive financial services to our customers nationwide,” said Marc Laird, founder, chairman, and CEO of Cornerstone. “We will create a category-defining experience that will strengthen our existing businesses and reinforce our mission of providing a positive difference in the lives of others.”
In addition to new products and services, Cornerstone said the merger would enable it to diversify and increase its earnings, reduce average cost of funds, and generate additional and recurring net interest income.
In terms of leadership, Scott Almy has been tapped as CEO of the new company. Scott, who brings more than three decades of banking and mortgage industry experience, most recently served as chief operating officer of LegacyTexas Bank. Marc Laird will remain as chairman of the company.
“We believe in our ability to help usher in a new model in financial services, balancing the exceptional service record of two respected and historically successful organizations. I’m honored to join Cornerstone at an exciting time and to work with such talented and dedicated team members,” said Almy. “We look forward to extending the success of two respected brands, expanding our scope of services, and continuing our commitment to being known as a preferred workplace.”
Adam Laird, Cornerstone’s current president, has been named chief executive officer of mortgage banking. Laird commented: “This is an incredible milestone for Cornerstone. The strategic combination of mortgage lending, loan servicing, commercial and digital banking, and additional financial services and products, together with caring team members and our award-winning culture, will propel our continued success for generations to come.”
Cornerstone has also bolstered its executive with the addition of industry veterans Chuck Phelan (chief financial officer), Mary Clouthier (chief risk officer), and David Fraser (chief credit officer). The company plans to add more commercial lending and digital services bankers this year.
“We’re thrilled to team up with Cornerstone, combining two family-owned organizations with a long history of serving the needs of others,” Roscoe chairman and CEO John Jay said. “This transaction will allow us to better serve existing customers and provide a platform for future growth and diversification.”