MVB Financial in Fairmont, West Virginia, has agreed to buy Integrated Financial Holdings in North Carolina for $98 million in an effort to accelerate growth of its state-guaranteed lending business.
The $3 billion asset MVB Integrated Financial said in a statement announcing the stock purchase agreement on Friday that it would take on major loan origination and servicing operations from the Small Business Administration and the United States Department of Agriculture.
Integrated Financial is based in Raleigh and is the parent company of West Town Bank & Trust and Windsor Advantage. The bank holds approximately $435 million in assets, $326 million in loans and $334 million in deposits. Since 2018, its government-backed lending teams have issued more than $1 billion in loans. Windsor is a national lending service provider, offering financial institutions an outsourced SBA and USDA lending platform. It manages over $2 billion in loans.
“Both [are] strong businesses by ourselves, [and] together, we are becoming a national leader in government-backed lending, particularly SBA and USDA lending,” said Larry Mazza, managing director of MVB Financial, in the release. “We think we have a great cultural fit and exceptional talent additions.
MVB launched its SBA Loan Operation in early 2021. For the first half of this year, the bank reported SBA loan production of $101 million, three times the same period a year earlier.
Upon completion of the transaction, Integrated Financial President and CEO Eric Bergevin plans to join MVB’s management team as a direct report to Mazza. Riddick Skinner, target’s head of government loans, and Michael Breckheimer, head of corporate strategy for Integrated Financial, also plan to join MVB.
“We are excited to embark on this strategic alliance with MVB to create what we believe to be an industry-leading juggernaut in government-backed lending,” Bergevin said in the statement.
The transaction is expected to close in the first quarter. MVB said the deal would be accretive to tangible book value per share by about 15% next year.