Home Trust completes acquisition

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By Nicolas Heffernan

Home Capital Group announced that its wholly owned subsidiary Home Trust Company has completed the acquisition of CFF Bank for $18.2 million, subject to final adjustments.

"The addition of CFF Bank supports our long-term strategy to develop our deposit diversification initiatives, and provides an opportunity to add new banking products to our existing offering," said Gerald M. Soloway, CEO of Home Trust. "We welcome CFF Bank to the Home Trust family and look forward to building relationships with the Canadian First Financial Centres."

With its strong focus on single-family residential mortgages, CFF Bank is a natural fit with Home Trust's position as Canada's leading alternative financial institution. The news also means Westbridge Mortgage REIT, led by the founder of CFF forerunner MonCana Bank, James Clayton, will not assume control of the lender.

"Through its owner-managed Centres, CFF Bank has been successful in driving new business and originating insured and uninsured mortgages," said Martin Reid, President of Home Trust. "This distribution network provides an excellent platform for offering Home Trust's mortgages, loans and credit cards. The completion of this transaction demonstrates our ongoing commitment to making investments in our business that support future growth and opportunity."   

With the acquisition of CFF Bank, Home Trust adds assets of approximately $245 million and $1.5 billion in loans under administration.

The transaction has received approval by the federal Minister of Finance and the Competition Bureau, with brokers largely

  • John Bargis on 2015-10-01 12:19:05 PM

    Congratulations Home Trust!!!!

    The purchase of CFF Bank by a broker advocate is a good thing for the industry....CFF Bank is now very well capitalized, which is what they desperately needed.

  • Ron Butler on 2015-10-01 12:22:01 PM

    Congratulations to the HCG organization on coming through and helping our whole industry. This would not have been the right time to liquidate a failing tiny bank and HCG solved the matter quickly and painlessly.

  • Anthony C. on 2015-10-01 1:29:59 PM

    Congradulations to G. Soloway and his team at HCG.

  • John Van Driel on 2015-10-01 3:06:29 PM

    Will this affect the "normal" brokerage channel??

  • Walid Hammami on 2015-10-01 4:47:57 PM

    Okay, I guess our hopes of owning our own bank are gone...for the moment.

    We need to redo this thing again from scratch.

  • Anthony Contento on 2015-10-04 9:29:19 PM

    Congratulation to Home Trust !! It certainly helps our industry at a time when markets are so volatile, and the smaller players may have been caught in the whirlwind. I hope the CFF owners, also receive the benefit from this purchase. Good Luck to everyone !

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