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