Harrisburg, Pa.-based Dauphin Deposit Corp. will acquire all the stock of Eastern Mortgage Services Inc., a closely held. mortgage banking company for $20 million in cash, the bank reported Thursday.
The transaction is expected to close in early July, pending various state and regulatory approvals and the approval of Eastern Mortgage's investors.
The Trevose, Pa.-based mortgage company originated $917 million of first mortgages last year, of which 65% were purchase money mortgages. Eastern Mortgage's portfolio grew by 73% last year.
Marvin Bank, currently chief executive officer and managing director of Eastern Mortgage Services, will continue as CEO after the acquisition, according to Dauphin.
Mr. Bank is one of three shareholders of Mortgage Services, said David Dinger, Dauphin's chief financial officer.
"We are very excited by the opportunities that the new capital and technologies will bring to Eastern Mortgage Services," said Mr. Bank. "We believe this will enable us to expand our market share and our servicing portfolio."
Dauphin's chairman and chief executive officer, William King, said in a statement the acquisition will broaden the bank's mortgage operations, "primarily into new markets contiguous to our trading areas. (Eastern Mortgage) is in the right geography and a good size for us."
