The OppFi / BNC National Bank Deal and Bitty

OppFi, a publicly traded fintech lender, has announced that it has entered into a definitive agreement to acquire BNC National Bank in a cash-and-stock transaction valued at approximately $130 million. OppFi says that “the transaction unites two complementary, market-leading businesses, combining OppFi’s sophisticated online lending platform with BNC’s national bank charter and diversified banking infrastructure to create a stronger, more diversified financial services provider.”

As deBanked readers may be aware, OppFi also owns 35% of Bitty, a small business finance provider, a detail reiterated in the official bank acquisition announcement. Viewed through that lens, there appears to be a natural synergy between Bitty and BNC. BNC, for example, offers SBA loans, equipment financing, working capital loans, and more. Headquartered in Glendale, AZ, the announcement notes that BNC has “a particular strength in business financing and SBA lending.”

OppFi stands to benefit in several ways from the arrangement, including gaining “access to BNC’s stable, low-cost deposit base, which carries a cost of less than 2%.”

“BNC will continue normal operations as a community banking division within OppFi Bank, and will continue to be led by Dan Collins and the existing BNC management team,” the companies state. “Todd Schwartz will lead the combined company as Chief Executive Officer and Executive Chairman. Michael Vekich will serve on the board of directors of OppFi Bank.”