Mortgage Solutions Financial announces its intention to acquire First American State Bank

Will become Colorado’s 11th largest bank and will be known as MSF Bank

Mortgage Solutions of Colorado, LLC d / b / a Mortgage Solutions Financial and First American Bancorp announced on January 5 that they have entered into a definitive merger agreement whereby Mortgage Solutions Financial will acquire First American State Bank.

Mortgage Solutions Financial will be the surviving entity and will change its name to MSF Bank. First American State Bank will continue to operate under this name at its location in Greenwood Village. The merger is subject to approval by federal and state regulators and shareholders of First American Bancorp, the parent company of First American State Bank.

Headquartered in Colorado Springs, Mortgage Solutions Financial is a national mortgage lender with nearly 60 branches operating in more than 45 states with approximately 600 employees. It consistently ranks among the top five independent mortgage lenders in the United States for producing VA loans, a fitting distinction for a company founded by Air Force veteran Roy Clennan.

“I have worked in the mortgage industry since 1992 and am excited about the prospect of acquiring a banking charter. Becoming a bank will help us expand the financial product offering to our borrowers, ”says Clennan.

The First American State Bank was founded in 1995 by Jay Davidson. It is a single-location Colorado banking company with $ 260 million in assets.

“We have worked hard to build First American State Bank on a solid foundation of talented employees and valued clients. This partnership with Mortgage Solutions Financial represents an exciting new chapter for all of us, made possible by the hard work and dedication of the entire team at First American State Bank, ”said Davidson.

Once the merger is complete, MSF Bank would have assets of around $ 750 million, making it Colorado’s 11th largest community bank in terms of asset size.

The current President and COO of First American State Bank, Scott Yeoman, will be the Managing Director of MSF Bank. He has extensive experience in the banking industry helping successful teams and focused banking business strategies.

Following the merger, MSF Bank will continue to operate its residential mortgage business in Colorado Springs under the leadership of current President of Mortgage Solutions Financial, Rob Clennan, who will become Executive Vice President of the Mortgage Division of MSF Bank. MSF Bank’s commercial lending division will remain at the Greenwood Village branch of the First American State Bank and will be managed by David Korn, who has worked for the First American State Bank since 2008.

Terms of the transaction have not been announced. First American Bancorp shareholders will receive more information regarding the proposed transaction and the next special meeting of shareholders in the near future.

In connection with the transaction, Otteson Shapiro LLP acted as legal counsel to Mortgage Solutions Financial. Piper Sandler & Co. served as financial advisor and Lewis Roca Rothgerber Christie LLP served as legal advisor to First American State Bank and First American Bancorp.

Forward-looking statements

Certain statements contained in this press release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are subject to risks and uncertainties and are made in accordance with the provisions of the sphere of security of section 27A. of the Securities Act of 1933, as amended; and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use in statements of words such as “objective”, “anticipate”, “estimate” or “expect” and similar words and expressions indicating that the statement deals with certain results, occurrences. , future plans. or goal. Forward-looking statements made by Mortgage Solutions Financial are based on our current expectations and assumptions about the business, economy and other future conditions of Mortgage Solutions Financial. Because forward-looking statements relate to future results and events, they are subject to inherent risks and uncertainties that are difficult to predict. Many possible events or factors could affect the financial results and future performance of Mortgage Solutions Financial and could cause such results or performance to differ materially from those expressed in forward-looking statements. These risks and uncertainties include, among others: the possibility that the expected benefits of the Merger may not materialize as expected or may not materialize at all, including due to the impact or problems resulting from the integration of the two companies or as due to the strength of the economy and competitive factors in the areas in which First American State Bank and Mortgage Solutions Financial do business, the possibility that the merger may be more costly than anticipated, including due to unforeseen factors or events, distraction of management’s attention from ongoing business operations and opportunities, potential adverse effects or changes in business relationships or with employees, including those resulting from the completion of the merger and the ability of Mortgage Solutions Financial to complete the integration of First American State Bank. Mortgage Solutions Financial disclaims any obligation to update these factors or publicly announce the results of any revision of any of the forward-looking statements included herein to reflect future events or developments.

For more information about the merger or about Mortgage Solutions Financial, contact Bobbie Collins at bobbie.
[email protected]

For more information on the First American State Bank, contact Jay Davidson at [email protected]

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