will acquire the bank.
“Our partnership with Home Capital strengthens our ability to deliver on this promise to our Canadian First Financial Centre owners and provides a stable foundation for CFF Bank to continue to grow,” Karl Straky, founder and chief commercial officer of CFF Bank told MortgageBrokerNews.ca. “Integrating distribution with manufacturing along with shared ownership continues to be a core vision for Canadian First.”
The bank will continue to operate its broker-affiliated service centres, with the goal of helping brokers strengthen customer relationships by allowing them to offer more than just mortgages.
“By doing more, our owners create deeper and longer lasting relationships with their customers, which builds value in their core businesses,” Straky said.
Home Capital announced Monday that its subsidiary, Home Trust
, will acquire CFF Bank. The purchase price is estimated at $15 million and is for all outstanding common shares in the bank.
Under the acquisition, Home Trust
will attempt to build relationships with the current 37 Canadian First Financial Centres. The commission structure for those brokers will not be changed, according to Gerald Soloway, CEO of Home Trust
Soloway also said he doesn’t expect the acquisition to have any effect on brokers outside of those 37 who currently operate CFF Centres.
However, according to Straky, additional service centres could be added in the future.
“Integrating distribution with manufacturing along with shared ownership continues to be a core vision for Canadian First,” Straky said. “As we have done in the past, we will continue to seek out manufacturing ownership opportunities in financial services where it makes strategic sense and adds value to our shareholders.”
The founder of CFF Bank is expressing his company’s dedication to brokers less than 24 hours after it was announced