Digital finance platform OppFi has agreed to buy BNCCORP in Glendale, Ariz.
The Chicago fintech said in a press release that it will pay $130 million in cash and stock for the parent of the $1.1 billion-asset BNC National Bank. The deal is expected to close in the fourth quarter.
The acquisition “unlocks significant opportunities for growth and product diversification,” Todd Schwartz, OppFi’s chairman and CEO, said in the release. “Combining our operations under unified regulatory supervision … simplifies and strengthens our compliance and risk management.”
OppFi noted that access to BNC’s low-cost deposit base, which has a cost of less than 2%, will provide diversified funding opportunities and lower funding costs. OppFi said it expects to generate at least $60 million of synergies in the first year post-closing, increasing to $115 million in the third years, based on geographic expansion and optimized funding.
The deal should be 25% accretive to OppFi’s 2027 earnings per share.
OppFi would become a bank holding company. OppFi Bank would continue to be led by Dan Collins and the bank’s existing management team.
Sidley Austin and Moelis & Co. advised OppFi. Fredrikson & Byron and Piper Sandler advised the bank.