Prospect Mortgage to buy CapWest Mortgage

Prospect Mortgage said Friday it is buying certain assets of CapWest Mortgage, a division of Farmers Bank & Trust. Financial terms weren’t announced. Kansas City-based CapWest is a call center operation focusing on Consumer Direct sources of business. Prospect Mortgage is backed by Sterling Partners.

PRESS RELEASE

SHERMAN OAKS, Calif., June 26, 2015 /PRNewswire/ — Prospect Mortgage, LLC, one of the nation’s largest independent mortgage lenders, today announced it is acquiring certain assets of CapWest Mortgage, a Kansas City-based call center operation focusing on Consumer Direct sources of business. CapWest is a division of Farmers Bank & Trust, headquartered in Great Bend, Kan.
Commenting on the acquisition, Prospect Chairman and CEO Mike Williams said: “During the last several quarters, we conducted extensive market due diligence on an array of strategic opportunities that would complement Prospect’s business and drive growth and profitability.” Mr. Williams added, “We believe CapWest’s sophisticated call center operations and seasoned management team will provide Prospect with significant growth opportunities and an enhanced competitive advantage in the marketplace. We are excited to have the CapWest team join the Prospect family and look forward to this acquisition creating long-term value for our employees, partners and investors.”
One of Prospect’s stated strategic objectives has been to capitalize on the emerging Consumer Direct market by expanding and enhancing its capabilities in this channel. Prospect has the resources to scale CapWest’s model to fulfill an expanded spectrum of lead sources and products, and the acquisition will serve as a foundational component to leverage Prospect’s existing Consumer Direct initiatives. CapWest will operate as a separate division under Prospect Mortgage, and Monte Robbins, currently President of CapWest, will become a Prospect Divisional President responsible for the call center’s growth and operations.
“As we looked at the growth potential for CapWest, we knew it would eventually need a larger platform than our family-owned bank to truly scale. When Prospect Mortgage inquired and shared their vision for the utilization of the CapWest model, we saw tremendous upside potential for both CapWest and Farmers Bank,” said W.R. Robbins, Chairman and CEO of Farmers Bank & Trust.
Robbins continued, “Home lending is changing rapidly, and it is a change being led by well-capitalized, smart entrepreneurs who understand how to leverage technology to create a wonderful consumer experience in this highly regulated, complex market space. I am delighted by not only the growth CapWest will see in the future under this structure but also by the long-term relationship Farmers Bank & Trust is establishing with Prospect Mortgage. I have seen great results when you have creative, forward-thinking individuals working on a shared vision for the future.”
About Prospect Mortgage
Headquartered in Sherman Oaks, Calif., Prospect Mortgage is one of the largest independent residential retail mortgage lenders in the United States. It is a leading lender offering a full range of quality home loans, including FHA and VA, conventional, jumbo and super jumbo, renovation and more. Read more about Prospect at www.MyProspectMortgage.com. Follow us on Twitter @MyProspectMtgand visit us on Facebook, ProspectMortgage, for company updates. Prospect Mortgage is backed by Sterling Partners, a private equity firm with approximately $5 billion in assets and a distinct point of view on how to build great companies.
About Farmers Bank & Trust
Farmers Bank & Trust’s colorful history dates back to 1907. What began as a predominantly agricultural lending institution over a century ago now operates as a state bank with a diverse portfolio of manufacturing, commercial, agriculture, oil and residential loans, deposit products and cash management options. The roots of this institution run deep in the philosophy of building strong customer relationships and developing new solutions to changing customer needs. Farmers Bank has established itself as a strong bank in central Kansas and is positioned for the future to serve the next generation in both rural and urban communities. Today, Farmers Bank & Trust’s capital account exceeds $100 million with total assets of over $700 million.
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