CMG Financial founder to acquire Greenwoods State Bank
Christopher George, the founder of the California-based multichannel mortgage lender CMG Financialhas struck a deal to acquire Greenwoods Financial Groupthe owner of Greenwoods State Bank. The financial details of the deal were not disclosed.
George will indirectly become the sole owner of a $575 million FDIC state-chartered bank based in Lake Mills, Wisconsin, offering consumer, corporate and wealth management products. Founded in 1893, Greenwoods is challenged by the restrictive monetary policies imposed by the US Federal Reserve (Fed) in recent years.
Meanwhile, CMG Financial, founded in 1993 by George, a former Association of Mortgage Bankers (MBA) chairman, has grown through mergers and acquisitions and organically. In 2024 it acquired Norcom mortgage‘s storefronts in April. In 2023, the company added the retail division of Homebridge Financial Services in March and March Shamrock Home Loans‘ origination team in November.
In the first half of 2024, CMG was the 13th largest U.S. mortgage lender, originating $11.8 billion in mortgages, up 22% year over year, according to Within financial mortgage.
George wants to help Greenwoods grow the bank’s footprint and market share in Wisconsin and throughout the Midwest. Greenwoods currently has nine locations in southern Wisconsin, including Jefferson, Green, Rock, Racine, Walworth and Waukesha counties.
“In today’s high-rate environment, we are excited to offer innovative products and ideas to help address the challenge of creating greater access to affordable housing options,” George said in a statement.
Examples of products include a first-lien home equity line of credit (HELOC) linked to a checking account that accelerates mortgage payments, called All in One Loan, and a down payment crowdfunding platform called HomeFundIt.
In a statement, Greenwoods said that “this change involves a shift in the bank’s shareholders, rather than a purchase or merger by a large corporate entity or another bank. Greenwoods State Bank will be owned by one person, pending regulatory approval and vote by the board of directors.”
Bill McDonald, CEO of Greenwoods Financial Group, and Rob Cera, CEO of Greenwoods State Bank, will continue to lead the companies.
The acquisition, pending shareholder and regulatory approval, is expected to close in the first quarter of 2025. Sullivan & Cromwell LLP And RSM US LLP served as advisors to George while Reinhart Boerner Van Deuren, sc. advised Greenwoods State Bank.
