BNCCORP completes sale of mortgage banking unit to First Federal Bank

BNCCORP, a North Dakota-based bank holding company, has finalized the sale of its mortgage banking business to Florida-based community-based bank First Federal Bank.

Announced in April 2023, the deal allows BNCCORP, which operates community banking and wealth management businesses in North Dakota and Arizona, to maintain its community banking activities, including the arrangement or facilitation of residential mortgage loans for its bank and wealth management customers.

Michael Vekich — BNCC Chairman said: “We are pleased to have completed the sale of our residential mortgage business.

“The transaction lets us focus more intently on our core banking activities to the benefit of our shareholders and the communities that we serve. I particularly want to thank our mortgage business employees for the contributions the unit made over the years and wish them well as they move forward as a part of First Federal.”

Following the transaction, First Federal Bank will acquire the mortgage business assets of BNC National Bank, operating from its existing locations in Overland Park, Kansas; Moline, Illinois; Bismarck, North Dakota; and Phoenix, Arizona. The bank will continue to originate loans from its locations in Georgia, Wisconsin, and Florida, as it serves BNC National Bank’s mortgage customers.

BNCCORP wraps up sale of mortgage banking business to First Federal Bank. Photo courtesy of First Federal Bank/PRNewswire.

As a customer-owned community-based mutual institution headquartered in Lake City, Florida, First Federal Bank has 25 branches in the Southeast and operations in the Midwest. The acquisition grants First Federal Bank a nationwide consumer direct mortgage platform, allowing it to extend the benefits of community banking, customer service, and stability to an expanded customer base in new markets.

The purchase of BNC National Bank’s mortgage division will equip First Federal Bank to better serve customers from both organizations, providing additional technological tools and an extended product offering.

John Medina — First Federal Bank President and CEO said: “With the acquisition, First Federal gains a nationwide consumer direct mortgage platform and offers the benefits of community banking, customer service, and stability to the expanded customer base in new markets.

“Since 1962, it has been our mission is to provide solutions from a financially stable institution. This acquisition expands our commitment to customers and the residential mortgage sector. We look forward to serving the new mortgage customers with the same excellence they enjoyed from the BNC team.”