Mortgage Solutions Financial Announces Intention to Acquire First American State Bank

Will become the 11th largest bank in Colorado and will be known as MSF Bank

Mortgage Solutions of Colorado, LLC d/b/a Mortgage Solutions Financial and First American Bancorp announced on January 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 to do business under this name at its Greenwood Village location. The merger is subject to approval by federal and state regulators and shareholders of First American Bancorp, the parent company of First American State Bank.

Based in Colorado Springs, Mortgage Solutions Financial is a national mortgage lender with nearly 60 branches operating in more than 45 states with approximately 600 employees. It consistently ranks among the top five independent mortgage lenders in the United States for originating VA loans — a fitting distinction for a company founded by Air Force veteran Roy Clennan.

“I have worked in the mortgage industry since 1992 and am excited about the prospect of acquiring a banking charter. Becoming a bank will help us expand the financial product offering to our borrowers,” says Clennan.

The First American State Bank was founded in 1995 by Jay Davidson. It is a single-location Colorado banking firm with $260 million in assets.

“We have worked hard to build First American State Bank on a solid foundation of talented employees and valued customers. 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 team at First American State Bank,” said Davidson.

Once the merger is complete, MSF Bank would have assets of approximately $750 million, making it the 11th largest community bank in Colorado based on the size of its assets.

The current president and chief operating officer of First American State Bank, Scott Yeoman, will serve as chief executive officer of MSF Bank. He has extensive experience in the banking industry helping high performing teams and focused banking business strategies.

After the merger, MSF Bank will continue to operate its residential mortgage division in Colorado Springs under current Mortgage Solutions Financial president Rob Clennan, who will become the executive vice president of MSF Bank’s mortgage division. MSF Bank’s commercial lending division will remain at the Greenwood Village branch of First American State Bank and will be led by David Korn, who has worked for First American State Bank since 2008.

Terms of the transaction were not announced. First American Bancorp shareholders will soon receive more information regarding the proposed transaction and the upcoming special meeting of shareholders.

In connection with the transaction, Otteson Shapiro LLP acted as legal counsel to Mortgage Solutions Financial. Piper Sandler & Co. served as financial advisor and Lewis Roca Rothgerber Christie LLP served as legal advisor to First American State Bank and First American Bancorp.

Forward-looking statements

Certain statements 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 provisions of the section 27A safe harbor. 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 generally identified by the use in the statements of words such as “targets”, “anticipates”, “estimates” or “expects” and similar words and expressions indicating that the statement relates to a future result, an event, plan or objective. Forward-looking statements made by Mortgage Solutions Financial are based on our current expectations and assumptions regarding Mortgage Solutions Financial’s business, economy and other future conditions. Because forward-looking statements relate to future results and events, they are subject to inherent risks and uncertainties that are difficult to predict. Many possible events or factors could affect the future financial results and performance of Mortgage Solutions Financial and could cause such results or performance to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, among others: the possibility that the anticipated benefits of the Merger may not be realized when expected or at all, including due to the impact or issues arising from the integration of the two companies or as a result of the strong economy and competitive factors in the regions in which First American State Bank and Mortgage Solutions Financial operate, the possibility that the merger will be more costly to complete than anticipated, including due to unforeseen factors or events, diversions of management’s attention from ongoing business operations and opportunities, potential adverse reactions or changes in business or employee relationships, including those resulting from the completion of merger and the ability of Mortgage Solutions Financial to complete the integration of First American State Bank. Mortgage Solutions Financial undertakes no obligation to update these 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 more information on Merger or Mortgage Solutions Financial, contact Bobbie Collins at bobbie.
collins@mortgagesolutions.net.

For more information about First American State Bank, contact Jay Davidson at jdavidson@fasbank.com.

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