PHOENIX–(BUSINESS WIRE) – Western Alliance Bancorporation (“Western Alliance”) (NYSE: WAL) announced today that it has completed the acquisition of Aris Mortgage Holding Company, LLC, the parent company of AmeriHome Mortgage Company, LLC (“AmeriHome”). Based on AmeriHome’s closing balance and a premium of $ 275 million, the total consideration is approximately $ 1.22 billion.
“We are pleased to announce the completion of the acquisition of AmeriHome as we have successfully completed the government-sponsored state and business licensing process ahead of schedule,” said Ken Vecchione, president and chief executive officer, Western Alliance. “In addition, we signed an agreement to sell approximately $ 750 million in mortgage maintenance rights to strong counterparties that will allow the Western Alliance to retain substantially all custody deposits, which is expected to be completed in May. Both Western Alliance and AmeriHome have already started to recognize the significant synergies of this partnership and we are excited about this strong moment so far. ”
AmeriHome Mortgage brings a B2B approach to the mortgage ecosystem through its relationships with more than 700 independent correspondent mortgage originating customers, including independent mortgage bankers, community and regional banks and credit unions of all sizes. AmeriHome is the country’s third largest correspondent mortgage acquirer, purchasing approximately $ 65 billion in conventional conformations and origins insured by the government during 2020 from its network of independent mortgage originators and managing a portfolio of $ 99 billion mortgage services on 31 December. December 2020
For the Western Alliance, the addition of AmeriHome extends its domestic commercial business with a complementary, low-risk national mortgage franchise. AmeriHome’s combination of business model, diversified and complementary channels and sophisticated portfolio management strategies have successfully generated consistent and profitable returns across all fee and business cycle environments.
AmeriHome will operate under the brand name AmeriHome Mortgage, a Western Alliance Bank company, and will continue to be led by Jim Furash, its founding president and CEO.
About Western Alliance Bancorporation
With more than $ 35 billion in assets, Western Alliance Bancorporation (NYSE: WAL) is one of the best performing banking companies in the country. The company was the No. 1 with the best performance of the 50 largest public banks in the United States in the most recent listing of S&P Global Market Intelligence and occupies a high position in the list of Forbes “Best Banks in America” year after year. Its main subsidiary, Western Alliance Bank, a member of the FDIC, helps business clients realize their ambitions with teams of experienced bankers who offer superior services and a full spectrum of personalized lending, deposit and treasury management resources. Business customers also benefit from a wide range of specialized financial services that provide strong expertise and customized solutions for a wide variety of industries and sectors. Serving customers across the country wherever business takes place, Western Alliance Bank operates full-service banking divisions with individual brands and has offices in major markets across the country. For more information, visit westernalliancebank.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements relating to future expectations, beliefs, projections, plans and strategies, anticipated events or similar trends and expressions relating to matters that are not historical facts. These forward-looking statements include, but are not limited to, statements about (i) the benefits of the acquisition of AmeriHome; (ii) the completion of the sale of certain mortgage service rights; (iii) objectives, expectations and intentions and other statements contained in this presentation that are not historical facts; and (iv) other statements identified by words such as “may”, “assumes”, “approximately”, “will”, “wait”, “forecasts”, “intends”, “plans”, “believes”, “search,” “Estimates”, “goals”, “projects” or words of similar meaning generally intended to identify forward-looking statements.
These forward-looking statements are based on the current beliefs and expectations of Western Alliance management and are inherently subject to significant commercial, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Western Alliance. In addition, these forward-looking statements are subject to a number of risks, uncertainties and assumptions with respect to future business strategies and decisions that are subject to change and are difficult to predict with respect to time, extent, probability and degree of occurrence. As a result, actual results may differ materially from the anticipated results discussed in these forward-looking statements due to possible uncertainties. The following factors, among others, may cause actual results to differ materially from anticipated results or other expectations expressed in the forward-looking statements:
AmeriHome’s performance may be adversely affected by an environment of rising rates, changes in the combination of purchase and refinancing volumes, or other factors;
the expected growth opportunities and other synergies from the acquisition may not be fully realized or may take longer to be realized than expected;
operational and compliance and business disruption costs can be higher than expected;
the effects of the COVID-19 pandemic underway at Western Alliance, AmeriHome and their respective customers, employees and third-party service providers; and
the other factors that may affect the future results of Western Alliance and AmeriHome discussed in the most recent annual report by Western Alliance on Form 10-K filed with the Securities and Exchange Commission.
Any forward-looking statement made in this release is based only on information currently available to us and speaks only as of the date it is made. We do not intend to have and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, which may be made from time to time, set out in this release to reflect new information, in the future events or not.