BM Technologies in Radnor, Pa., has agreed to buy First Sound Bank in Seattle.
BM Technologies, spun off from Customers Bancorp earlier this year, said in a press release Monday that it will pay $23 million in cash for the $150 million-asset First Sound. The deal is expected to close in the first half of 2022.
The combined company will operate as BMTX Bank.
“This is a thrilling milestone for BM Technologies and is 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,” Luvleen Sidhu, BM Technologies’ chairman and CEO, said in the release.
“This merger allows BMTX to lead a new wave of financial innovation by enhancing its focus on technology, inclusion, easy-to-use products, and customer education with the mission of creating ‘customers for life’,” Sidhu added. “This merger is expected to meaningfully expand our already profitable, technology focused business model and will enhance our diversified earnings.”
Sidhu said BMTX Bank, over time, will add direct-to-consumer and small business operations, along with marketplace lending, robo-advisory services and blockchain-based payment systems.
Marty Steele, First Sound’s president and CEO, will lead the combined company’s community banking division and serve as chief operating officer of BMTX Bank.
Wedbush Securities and Nelson Mullins Riley & Scarborough advised BM Technologies. Keefe, Bruyette & Woods and Keller Rohrback advised First Sound.