First Federal Bank Announces Agreement to Acquire Mortgage Division From BNC National Bank

LAKE CITY, Fla., April 12, 2023 /PRNewswire/ -- First Federal Bank and BNC National Bank announce that they have signed a definitive agreement for First Federal to acquire certain assets and liabilities of BNC National Bank's mortgage division.  The purchase is expected to close in the second quarter of 2023; terms of the transaction were not disclosed.

First Federal Bank will continue to originate loans out of existing locations in Georgia, Wisconsin and Florida.  As a result of the transaction, First Federal will purchase BNC's National Bank's mortgage business assets and will continue to serve BNC National Bank's mortgage customers from its existing locations in Overland Park, Kansas, Moline, Illinois and Bismarck, North Dakota locations and in the Phoenix, Arizona market.

As a community-based mutual institution headquartered in Lake City, Florida, the bank is owned by its customers rather than stockholders, and has 25 branches in the Southeast and operations in the Midwest. With the acquisition, First Federal will gain a nationwide consumer direct mortgage platform and will extend the benefits of community banking, customer service, and stability to the expanded customer base in new markets.

John Medina, President and CEO of First Federal, commented, "Our mission is to provide solutions from a financially stable institution that is a great place to work and bank. This acquisition underscores our commitment to our customers and the residential mortgage sector. We look forward to serving the BNC mortgage customers with the same excellence they came to expect from the BNC team."

BNC National Bank's Chairman Michael Vekich said, "The Board of Directors made the decision to exit our nationwide residential mortgage origination business after extensive deliberations and concluding that this change in strategy is in the best long-term interests of the BNC, its shareholders and the communities we serve."

The acquisition of BNC National Bank's mortgage division will enable First Federal to better serve the customers of both organizations by offering additional technology tools and an expanded product offering. First Federal anticipates retention of substantially all employees of the BNC National Bank's mortgage division team. "We look forward to welcoming the new employees to our Residential Lending Team," says Paul Ottendorf, Division President.  

It is anticipated the BNC platform will transition to the First Federal brand within a few months of closing. Since 2020, customers have increased their use of digital tools and First Federal's ongoing investment in cutting-edge digital solutions for customers is coupled with personal service. "BNC National Bank's mortgage division team will continue to excel at our core strengths while adding to our product offerings and joining an already amazing First Federal mortgage business," says Doug Brendel, President Mortgage Banking. With the steady, forward-thinking leadership, First Federal will continue to be lauded as one of the best small banks in Florida.

First Federal was advised in the transaction by Robert Flowers of Bradley Arant Boult Cummings LLP.  BNC National was advised by Kaplan, Strangis and Kaplan, P.A.

About First Federal Bank

First Federal Bank is a community-based bank offering consumer and commercial banking solutions, services, and loans through banking offices in Florida's Panhandle, North Central and East Florida, and coastal South Carolina. Mortgage, SBA and USDA customers are served through lending offices across the Southeast and Midwest. First Federal is headquartered in Lake City, Florida with assets totaling over $3.6 billion. First Federal has received a "5-Star, Superior" financial rating from BauerFinancial, Inc., of Coral Gables, Fla. for more than two decades and was recognized by Newsweek as "Best Small Bank in Florida" in 2020, 2021, 2022 and 2023. For more information, visit www.ffbf.com.

About BNCCORP, Inc.

BNCCORP, INC., headquartered in Bismarck, N.D., is a registered bank holding company dedicated to providing banking and wealth management services to businesses and consumers in its local markets. The Company operates community banking and wealth management businesses in North Dakota and Arizona from 11 locations.

This news release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of First Federal. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management are generally identifiable by the use of words such as "expect," "believe," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should," or other expressions. We caution readers that these forward-looking statements, including, without limitation, those relating to the completion of the acquisition of BNC's mortgage business, our future business prospects, revenues, working capital, liquidity, capital needs, interest costs and income, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors. These factors include, but are not limited to: risks of loans and investments, including dependence on local and regional economic conditions; competition for our customers from other providers of financial services; possible adverse effects of changes in interest rates, including the effects of such changes on derivative contracts and associated accounting consequences; risks associated with our acquisition and growth strategies; and other risks which are difficult to predict and many of which are beyond our control. In addition, all statements in this news release, including forward-looking statements, speak only of the date they are made, and First Federal undertakes no obligation to update any statement in light of new information or future events.

SOURCE First Federal Bank