OakNorth Bank is increasing recruitment in the US as it moves closer to completing its acquisition of Michigan-based Community Unity Bank, reported Bloomberg.
The transaction, structured as an all-share deal and announced a year ago, is going through regulatory procedures.
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During an interview with Bloomberg, News OakNorth Bank CEO Rishi Khosla said, “We are hopefully months away”.
The London-based financial institution is seeking approval from both the Office of the Comptroller of the Currency and the Federal Reserve for a national bank charter in connection with the acquisition.
Since August 2024, OakNorth has been permitted to operate a representative office focused on supporting roles such as back-office functions and marketing.
Current job advertisements show that OakNorth is looking to fill positions in areas such as product management, compliance, business lending and debt financing in New York and Michigan.
Additionally, the company is searching for an investment banker to assess possible market entry strategies at a time when it is exploring further merger, acquisition and fundraising options.
These staffing plans come as OakNorth continues to grow its presence in the US following the collapse of lenders such as Silicon Valley Bank and Signature Bank two years ago.
The company’s recent financial statements show that pretax profit edged up to £222.5m ($297m), with the total loan book expanding by 11% to £4.9bn.
Activity in the US accounted for 40% of gross loan originations and drove most of the growth, while UK lending remained largely unchanged.
Khosla explained that the limited growth in their domestic market was intentional in order to maintain credit quality.
“What we experienced in the UK first half of last year was irrational behaviours,” he said, noting that lending activity increased again later in the year.
Supported by investors including Jared Kushner’s Affinity Partners, OakNorth is one of several fintech firms seeking licences in the US.
