Citizens Financial Group Honored for Mortgage Company Acquisition
Council member Citizens Bank was recently ranked No. 1 for the “Best Strategic Nonbank Acquisition” by Bank Director’s 2020 RankingBanking report. The bank, based in Providence, RI, earned the top spot after acquiring Tennessee-based Franklin America Mortgage Co.
Bank Directors reviewed the post-acquisition performance of over 40 acquirers to compile the rankings, evaluating the mergers across several measures, ranging from asset size to market reaction. According to the report, the acquisition—signed in August of 2018–tripled the bank’s off-balance sheet mortgage servicing portfolio, and further diversified the bank’s mortgage capabilities by adding new banking channels. The deal has led to a 27.9% growth in Citizens’ mortgage portfolio. In addition to this significant portfolio growth, the bank recently unveiled a host of new digital tools, such as a digital mortgage platform and an online real estate portal, to increase mortgage operations.
“As you watch the mortgage industry unfold, we will be a real winner in this because we’re building key capabilities, we’re building digital capabilities, we’re making sure that our operations are efficient so we [can] compete effectively in the marketplace,” said Eric Schuppenhauer, the president of Citizens’ home mortgage unit. “We’re building a franchise that’s built strong customer relationships, is able to flex when rates are low on the origination side, and is able to scale in the right way when you hit a higher rate cycle.”
The Council congratulates Citizens Bank on this achievement and success in its new ventures in the industry. Read more in the Providence Business News.
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