Veritex agrees to acquire minority stake in Thrive Mortgage

Veritex Holdings in Dallas has agreed to buy a large stake in Thrive Mortgage in Georgetown, Texas.

The $9.2 billion-asset Veritex said in a press release Tuesday that it will pay $53.9 million in cash for a 49% stake in Thrive. The deal is expected to close in the middle of 2021.

Thrive operates in several states, including Texas, Ohio, Colorado, Kentucky, North Carolina, Kansas, Virginia, Florida, Maryland and Indiana.

“I couldn’t be more excited about our partnership with Thrive,” Malcolm Holland, Veritex’s chairman and CEO, said in the release.

“The breadth of management and experience, coupled with an industry leader in cutting-edge technology, provides a powerful earnings investment to drive consistent shareholder return and mitigates business cycle volatility to our commercial-focused portfolio,” Holland added.

Veritex said the deal should increase fee income with a “counter cyclical business” to its asset-sensitive balance sheet. The company said the investment allows it to leverage excess capital and liquidity while allowing flexibility to pursue organic growth and acquisitions.

Stephens and Skadden, Arps, Slate, Meagher & Flom advised Veritex.

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