Key Points:
- The parent company of Veritex Community Bank splashed out an impressive $54.9 million just last year to nab a nostalgic 49 percent piece of the Thrive Mortgage pie.
- Prediction says the magic 8-ball isn’t swinging in their favor, and they are bracing for a $25 million to $30 million hit if the deal goes through. Now that’s what I call a Clearance Sale!
- The bank originally banked on a mortgage enterprise not facing any indigestion, cashing in big time on home-buying frenzy amidst low interest rates.
- But now it seems like this tasty pie is turning sour – a clear example of Murphy’s law – whatever can go wrong, will go wrong.
- Theoretically, the bank could walk away from the deal, but sadly, the return policy has expired. It’s like buying a sweatshirt at a no-return policy store and realizing later it’s two sizes too small!
Final Thoughts:
They say fortune favors the brave, but in this case, it looks like the brave might need to withdraw some extra luck from the Fortune Bank. Investing in business is like a game of roulette, sometimes you hit the jackpot and other days you’re left wandering around the casino, trying to make sense of the disaster. Veritex took a leap of faith, diving headfirst into the mortgage market, expecting to swim in waves of green, but alas, it seems they’ve instead found themselves in choppy waters.
We’re rooting for Veritex here, hoping they manage to turn the tide and sail into calmer seas. But let’s remember, if business was predictable, we’d all be sipping Mojitos on our private islands. Sometimes, you roll the dice, and it’s snake eyes. Sometimes, you buy a 49% stake in a mortgage company, and the market says “Ha. Nice try.” Here’s hoping Veritex has a good swimming coach.
Original article: https://www.inman.com/2023/12/14/merger-of-lower-and-thrive-would-give-veritex-12-5-ownership-stake/
