Luminate Bank is expanding its presence across the Midwest and central United States with the acquisition of First State Mortgage Services, the companies announced Thursday.
As part of the deal, 43 members of the First State Mortgage team will join the Minneapolis-based bank, including roughly 26 originators and CEO Rene Shaffer. The financial terms of the deal were not disclosed.
"When we first started conversations with Renee Schaefer, we immediately connected just with our philosophies around culture and supporting teammates at a high level," Eric Lovins, co-founder and president of mortgage lending at Luminate Bank, told National Mortgage News Friday. "The average tenure of their loan officers is 13.5 years ... which is really unheard of."
First State Mortgage, a wholly owned subsidiary of First State Bank, holds the number one market share position in Bloomington, Illinois. Customers will gain access to Luminate's resources and product portfolio while continuing to work with many of the same professionals, the release said.
Founded in 2007, First State Mortgage closed and funded 1,358 loans for $342 million last year. It operates five locations throughout Illinois, including its headquarters in Bloomington, with lending capabilities in most states, according to the company's website.
Luminate is licensed in all 50 states and originated about $2.2 billion year to date, according to InGenius. The bank was included in Scotsman Guide's top mortgage lenders rankings for 2026, placing No. 36 overall and No. 26 among retail mortgage lenders. Luminate finished No. 31 overall the year before.
"This is an important step forward for Luminate Bank and a powerful combination of two organizations that share the same fundamental values," Lovins said.
Luminate's previous acquisition
This was the second acquisition Luminate's mortgage arm has made since the start of 2025. The bank
The bank will continue to look for opportunities, specifically in the Midwest and Southeast, in an environment that makes it difficult for companies with less than $2 billion in origination volume to scale, given the technology investment required, Lovins said.
Multiple other mortgage companies have announced acquisitions this month, including Checkr, the parent company of employment and income verification mortgage platform Truework, which agreed to a deal with Truv, and Atlas VMS, which bought Texas-based First Appraisal Management.
