Minnetonka, Minn.-based American Equity Bank is acquiring Luminate Home Loans this month in an all-stock transaction.
The acquisition will likely double equity capital for the $96.1 million American Equity Bank. Minneapolis-based Luminate Home Loans, which funded $1.77 billion in projects last year alone, has 18 locations and more than 200 employees. The two companies have already shared partial common ownership: Taryn Reuter has been chair of the board of both Luminate and American Equity; Eric Lovins and Thomas Payne own Luminate. The trio also own the bank with a small minority partner.
Reuter said the addition of Luminate Home Loans “adds horsepower” to the bank, calling it “a great strategic partnership,” allowing clients to have digital banking officers and business banking. To Payne, the loan company enhances the core competencies of the bank. Besides its suburban headquarters, American Equity also has a branch in Claremont, Minn., to serve the agricultural business in the southeast part of the state.
All employees are expected to remain on board through the acquisition. Key employees will have ownership opportunities, Reuter added.