"Scotiabank" acquires a small American bank to enhance its mortgage financing activity

Toronto —
Scotiabank announced its agreement to acquire Maple Financial Holdings, the owner of the American MapleMark Bank, in a move aimed at expanding its structured finance business related to the mortgage market in the United States.

MapleMark Bank is headquartered in Tulsa, Oklahoma, but is practically concentrated in Dallas, and owns assets close to one billion US dollars and deposits of about 828 million dollars.

Scotiabank did not disclose the value of the deal, but clarified that it will not have a material impact on its profits, pending the completion of the usual regulatory conditions.

The importance of the deal lies in granting Scotiabank the ability to offer deposits insured by the US Federal Deposit Insurance Corporation, an important element to attract more stable and lower-cost deposits within the US market.

The bank sees this step as supporting the growth strategy of deposits and capital markets businesses related to mortgages, especially as financial institutions seek stable funding sources in a high interest rate environment.

The bank’s CEO had previously indicated Scotiabank’s interest in a small deal that grants it this type of capability within the United States, without entering into large acquisitions.

The deal comes days after the bank announced quarterly results better than expected, supported by strong performance in Canadian banking services, despite increased provisions in anticipation of potential loan losses.