First American Mortgage heads to Oklahoma's Bank7

Oklahoma's Bank7 is purchasing a regional nonbank lender, expanding mortgage production capabilities within the consumer division of the community financial institution.

The Oklahoma-City based bank reached an agreement to acquire First American Mortgage, located in the city of Yukon. Founded in 1993 by Dale Bogle, who also serves as its president, First American has produced over $3 billion in originations since its launch, providing funding for over 18,000 customers residing in the Sooner State. 

The independent mortgage bank, which has no affiliation with the title insurance giant of the same name, posted approximately $41 million in origination volume over the past year, according to lending data provider Modex.   

"Partnering with Bank7 allows us to enhance our offerings while maintaining the same dedication to our clients and referral partners. We're excited for this next chapter and the opportunities it brings," Bogle said in a press release.

Financial terms of the deal were not disclosed. In addition to Bogle, First American employs seven other loan officers in its Yukon office, offering products exclusively in Oklahoma, according to the Nationwide Mortgage Licensing System. 

NMLS data also showed Bank7 had 10 registered mortgage originators in Oklahoma prior to the acquisition. Loan volume came in at ​under $20 million, according to Modex. 

Noninterest income in mortgage lending at Bank7 totaled $370,000 for full-year 2024, up 11.8% on an annual basis from $331,000 in 2023, it reported in its most recent earnings release.  

​The bank operates a total of 12 consumer branches in three states, including Kansas and Texas, where it primarily serves customers in the Dallas-Fort Worth area. 

"Under Dale's leadership, First American Mortgage has always been a high-touch and high-performing mortgage company, and we are honored to move forward together to better serve customers of both companies." said Bank7 chief credit officer and President Jason Estes in a press release.

The deal reflects Bank7's goals for growth this year to "reinforce its position as a community-focused financial institution," it said. 

The total volume of home loans originated in Oklahoma in 2023, the most recent period with full-year data available, came in at 67,422, according to the Home Mortgage Disclosure Act.

Bank7's expansion of consumer mortgage lending operations runs counter to industry trends over the past few years, which has seen depository institutions more likely to leave the space as origination volumes plummeted from record highs earlier in the decade. Regulatory requirements perceived as especially burdensome on smaller banks also contributed some to exit. 

At the same time, though, market conditions to start 2025, including scarce inventory levels and stubborn mortgage rates unlikely to quicken the pace of borrowing, make this year favorable for companies seeking consolidation, leading industry advisors have noted. 

While multiple banks have left consumer home lending, the past year has seen several expand their commercial services to offer warehouse lines of credit to mortgage companies.