Citizens Financial has wrapped up the acquisition of mortgage lender Franklin American Mortgage.

The cash deal is worth $511m and was first announced in May this year. 

The Citizens off-balance sheet mortgage servicing portfolio will treble from $21.6bn to nearly $65.3bn.

Citizens Financial will now have a total servicing portfolio of approximately $83.1bn.

According to the parties, Franklin is on track to originate more than $13bn in mortgages this year.

The acquisition also includes mortgage servicing rights valued at almost $600m.

Following the deal Citizens Financial customer numbers will grow by around 200,000.

As of end March, Franklin American Mortgage managed a $41.4bn mortgage servicing portfolio and generated approximately $13.7bn in annualised originations.

Taking Citizens Financial mortgage business to the next level

Citizens’ vice chairman and head of consumer banking Brad Conner said: “We believe this transaction creates tremendous value for Citizens.

“It takes our mortgage business to the next level, expanding our reach and adding immediate scale in servicing as well as innovative correspondent and wholesale solutions.

Citizens enjoyed a solid second quarter, beating market forecasts.

Second quarter net income rose by 33% to $425m.