New Era Begins for Fairstone Bank and Home Trust as They Join Forces to Create the Leading Alternative Lender in Canada Français

Fairstone Bank of Canada and Home Trust Company confirm the closing of the transaction announced on March 26, 2024

MONTREAL and TORONTO, Jan. 8, 2025 /CNW/ - Fairstone Bank of Canada ("Fairstone Bank") and Home Trust Company ("Home Trust") confirmed today the closing of the combination transaction announced on March 26, 2024, following satisfaction of all closing conditions, including receipt of required regulatory approvals.

The new combined group will operate under the parent legal entity, Fairstone Bank, and will include a family of well-established brands, including Home Trust, Oaken Financial, Home Bank, Fairstone, EdenPark and Fig.  

Scott Wood, President and Chief Executive Officer of Fairstone Bank, will serve as President and Chief Executive Officer of the combined group. Stephen Smith, founder and CEO of Smith Financial Corporation, will serve as Chair of the Board of Directors and Yousry Bissada, who served as CEO of Home Trust, will be appointed Vice Chair of the Board of Directors.

"I'm thrilled to join forces with the excellent team at Home Trust and combine our expertise to continue to improve and grow our businesses. The new group will offer a comprehensive suite of lending products, including residential and commercial mortgages, consumer deposits and GICs, credit cards, personal loans, retail financing, automobile financing and digital loans", said Scott Wood. "I look forward to collaborating with the talented teams across the new Fairstone Bank group to deliver exceptional value and innovation to our customers and partners across Canada."

"Uniting these two great companies enhances our ability to serve the millions of Canadians whose financial needs are often overlooked by traditional banks," commented Stephen Smith. "I am excited by the increased impact the combined organization can deliver for Canadians in search of an alternative for their financial needs."

This combination establishes the Fairstone Bank group as the leading alternative lender in Canada, servicing over 4,700 mortgage brokers and 2 million customers, with an extensive national footprint including more than 255 branches from coast to coast.

Smith Financial Corporation now owns a majority voting interest in Fairstone Bank. Centerbridge Partners, L.P., Ontario Teachers' Pension Plan Board and management continue as minority shareholders in Fairstone Bank.

Eric Hoffman, Senior Managing Director at Centerbridge Partners, added, "With this combination, we are creating a stronger platform for growth and innovation in financial services. The combined strengths of Fairstone Bank and Home Trust will allow us to better address diverse financial needs across Canada, delivering added value for customers and partners alike."

Jeff Markusson, Senior Managing Director, Financial Services at Ontario Teachers', commented, "By combining these two complementary businesses, it will help build an even more inclusive financial ecosystem in Canada by broadening access to essential financial products and empowering Canadians—especially those underserved—to reach their financial goals."

RBC Capital Markets acted as financial advisor to Smith Financial Corporation. Torys LLP acted as legal counsel to Smith Financial Corporation. Willkie Farr & Gallagher LLP acted as US legal counsel to Centerbridge Partners, L.P., and Stikeman Elliott LLP acted as legal counsel to Ontario Teachers' Pension Plan Board and Canadian counsel to Centerbridge Partners, L.P. Goldman Sachs acted as financial advisor to Centerbridge Partners, L.P., and BMO Capital Markets acted as financial advisor to Ontario Teachers' Pension Plan Board.

Fairstone Bank, Home Trust and Home Bank remain separate member institutions of the Canada Deposit Insurance Corporation (CDIC). For customers and deposit holders, all existing CDIC coverage remains the same.

About Smith Financial Corporation
Smith Financial Corporation invests for the long term in market-leading financial services companies with proven brands, client relationships and management teams. Alone and in partnership with like-minded institutions, it provides capital and expertise to help its portfolio companies thrive by embracing the entrepreneurial spirit. Its holdings include Canada Guaranty Mortgage Insurance Company, Fairstone Bank of Canada, First National Financial Corporation (TSX: FN), Glass Lewis & Co., and Peloton Capital Management and its private equity funds. Smith Financial Corporation is a family enterprise founded by Stephen Smith, one of Canada's leading financial services entrepreneurs. Please visit Smith Financial Corporation (https://www.smithfc.ca/) for more information.

About Fairstone Bank of Canada
Fairstone Bank of Canada and its subsidiaries, including Fairstone Financial Inc. and Home Trust Company deliver innovative, accessible and reliable financial solutions that enable Canadians to reach their financial goals. Collectively, we offer residential and commercial mortgages, consumer deposits and GICs, retail and automobile financing, credit cards and digital lending, in addition to unsecured and secured personal loans online and at more than 255 branches coast to coast. With a long-established history, we are proud to be Canada's leading alternative lending bank. Learn more at FairstoneBank.ca.

About Centerbridge Partners, L.P.
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for their investors. The Firm was founded in 2005 and, as of September 30, 2024, has approximately $40 billion in Assets Under Management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit www.centerbridge.com | LinkedIn.

About Ontario Teachers' Pension Plan Board
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $255.8 billion as at June 30, 2024. Ontario Teachers' invests in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 340,000 working members and pensioners. With a team of over 450 investment professionals operating in key financial centres around the world, Ontario Teachers' brings deep expertise in a broad range of sectors and industries. As a fully funded defined benefit pension plan, it has earned an annual total-fund net return of 9.3% since the plan's founding in 1990. At Ontario Teachers', they don't just invest to make a return; they invest to shape a better future for the teachers they serve, the businesses they back, and the world they live in. For more information, visit otpp.com and follow us on LinkedIn. 

SOURCE Fairstone Financial Inc.

Contacts: Caroline Morin, Vice President, Corporate Communications, [email protected], +1 833-461-2900