Move bids to create Canada's 'leading alternative lender'
Home Trust Company’s business is being merged with Fairstone Bank of Canada, a move by parent company Smith Financial Corp. to bring over two million customers and 250 branches across the country under the same roof.
Smith Financial founder and chief executive officer Stephen Smith revealed the decision on Tuesday in an agreement that he said would “create the leading alternative lender in Canada” and ramp up competition in the national financial services sector.
Product lines offered under the combined business will include residential and commercial mortgages, personal loans, credit cards, retail financing, auto financing, digital lending and consumer deposits, according to a statement, with a “unique omnichannel model” to combine a national branch and broker network.
Home Trust and Fairstone Bank are pleased to announce the signing of an agreement to merge their respective businesses. We’re thrilled to expand our footprint in our continued mission to help Canadians achieve their financial goals.
— Home Trust Company (@hometrustco) March 26, 2024
Press release: https://t.co/uQNbVZ5SG2 pic.twitter.com/WCiIc5XwLp
Home Trust president and chief executive officer Yousry Bissada said the merger, which is subject to customary closing conditions including regulatory approvals, presented an opportunity to expand the lender’s product offerings and ability to bring about financial success for its customers.
Scott Wood, Fairstone Bank’s president and chief executive officer, said the combination marked “the next natural step in our goal to be Canada’s most accessible and responsible lending bank.”
Smith Financial is set to own a majority stake in the new company, with other shareholders, Centerbridge Partners, Ontario Teachers’ Pension Plan Board and management all to continue as minority owners.
Home Trust came under Smith Financial’s ownership with its purchase last year of Home Capital Group in a major deal.
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