March 20 - Enterprise Bank & Trust, the banking subsidiary of Enterprise Financial Services Corp in St. Louis (Nasdaq:EFSC), has announced a definitive agreement to acquire certain assets of Gorman & Gorman Home Loans, a division of F&M Bank and Trust Company, subject to regulatory approval. Mark Gorman, founder and president of Gorman & Gorman, will join Enterprise as president of the bank's combined mortgage organization. Also joining Enterprise will be approximately 30 mortgage producers, underwriters and operations staff in St. Louis, Cape Girardeau, Mo., and Springfield, Mo.
Scott Goodman, executive vice president and head of Enterprise's mortgage, wealth management and fee income divisions, said, "We made a strategic decision to materially expand our mortgage business as a natural extension of our banking and wealth management businesses. Acquiring Gorman & Gorman's production organization and partnering with Mark to lead our companywide mortgage operations will immediately vault Enterprise into a significant market position in St. Louis. This acquisition also provides a strengthened management structure and operating platform to expand our mortgage capabilities in each of our markets. Mark's involvement with the local and state chapters of the Mortgage Bankers Association has established him as a leader in the mortgage industry and we're delighted that he and his team are joining us."
Mark Gorman commented, "Combining our organizations presents a tremendous growth opportunity for Enterprise. Together, we'll have the capacity to deliver a broader product set to clients and expand distribution of those products across the bank's footprint. In addition, we'll better serve our communities with more residential loan options and products for first-time home buyers and historically underserved markets."
Founded in 1994, Gorman & Gorman has originated more than $2.5 billion in mortgage loans. It consistently ranks among the leading mortgage lenders in St. Louis. In 2010, the firm was acquired by F&M Bank and Trust Company of Hannibal, Mo.
Terms of the acquisition, which is subject to regulatory approval, were not disclosed. The transaction is not expected to materially affect the company's 2013 earnings.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.