BM Technologies Announces $23M Strategic Merger with First Sound Bank
On November 18, 2021, BM Technologies (BMTX) announced a $23 million strategic merger with First Sound Bank (OTCPK: FSWA), a community bank based in Seattle. Under the terms, BMTX will pay up to $7.22 per share in cash for First Sound Bank's common stock, subject to adjustments and regulatory approvals. The merger is expected to close in the second half of 2022.
Post-merger, the combined entity will operate as BMTX Bank, a fintech-based digital bank serving global customers digitally while preserving First Sound's commercial and private banking services in the Puget Sound region. First Sound Bank currently serves small-to-medium businesses, nonprofits, entrepreneurs, and professionals through a single Seattle office. The deal follows BMTX's earlier acquisition by Megalith Financial Acquisition Corp., valued at $140 million, and represents a significant step in BMTX's strategy to obtain a bank charter and vertically integrate its digital banking platform.
- Illustrates the trend of digital banking platforms acquiring community bank charters to gain direct regulatory standing and reduce reliance on partner banks.
- Could signal further consolidation as BaaS providers seek vertical integration through bank acquisitions rather than sponsor bank partnerships.