SoFi has received conditional approval from the Office of the Comptroller of the Currency to acquire Golden Pacific Bank in Sacramento, Calif.
The regulatory agency said in a press release Tuesday that it also approved Social Finance’s application to create SoFi Bank, which will be based in Cottonwood Heights, Utah. SoFi will have $5.3 billion of assets and $718 million of capital at the end of its first year of operation.
The OCC approval includes a number of conditions for SoFi, including specific capital contributions, adherence to an operating agreement and confirmation that the bank will not engage in any crypto-asset activities or services.
SoFi Technologies said in a separate release that it had been approved by the Federal Reserve to become a bank holding company. The Golden Pacific deal is now expected to close in February.
“Today’s decision brings SoFi, a large fintech, inside the federal bank regulatory perimeter, where it will be subject to comprehensive supervision and the full panoply of bank regulations, including the Community Reinvestment Act,” Acting Comptroller Michael Hsu, said in the release.
“This levels the playing field and will ensure that SoFi’s deposit and lending activities are conducted safely and soundly,” Hsu said. “Like every other national bank we supervise, the OCC will require SoFi Bank … to be adequately capitalized, have strong risk management programs, policies and procedures in place, and provide fair treatment to its customers.”
SoFi agreed in March 2021 to buy the $170 million-asset Golden Pacific for $22.3 million in cash. The deal was originally expected to close at the end of last year.
“This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” Anthony Noto, SoFi’s CEO, said in the company’s release.
The national bank charter will “enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners and communities across the country, while continuing to uphold a high bar of regulatory standards and compliance,” Noto added.