BM Technologies to acquire First Sound Bank
US Banking-as-a-Service (BaaS) provider BM Technologies is to acquire First Sound Bank (FSB), a Seattle-based community business bank. The deal is valued at $23 million.
FSB is based in Seattle, Washington
BM Technologies will pay up to $7.22 in cash for each share of FSB common stock. The combined company, to be named BMTX Bank, is described as a “fintech-based bank focused on serving customers digitally nationwide”, supported by the community banking division that is expected to continue serving the greater Seattle market.
The transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close in the second half of 2022.
NYSE-listed BM Technologies – formerly known as BankMobile – supports checking and savings accounts, personal loans and credit cards, as well as disbursement services at approximately 745 college and university campuses.
Luvleen Sidhu, chair, CEO and founder of BM Technologies, describes the deal as “a major step forward in executing our vision to create a disruptive fintech bank that combines the best of financial technology with a strong and compliant FDIC-insured institution”.
At present, BM Technologies supports approximately two million accounts on its BaaS platform. The merger will bring BMTX-serviced deposits onto the balance sheet and will generate fee-based income plus allowing the deposits to be converted into loans over time.
Sidhu will be chair and CEO of BMTX Bank, while president and CEO of First Sound Bank Marty Steele will lead the combined company’s community banking division and also serve as COO.
