MYRTLE BEACH — Coastal Carolina National Bank could double its mortgage loan business in a year to $50 million with the acquisition of Investors Mortgage Co., CCNB president Laurence Bolchoz said Tuesday afternoon, hours after the acquisition was announced.
“It made sense,” Bolchoz said of the acquisition that he said took only 90 days from start to finish.
Bolchoz and Dave Brunko, who founded Investors Mortgage in 1983, had known each other for 20 years, and Bolchoz said Brunko and his staff brought dexterity with some financing, such as Farmers Home Administration, and connection with some Realtor referrals which the bank did not have.
The acquisition comes at a time when the Grand Strand real estate market has been on a steady increase for about a year. The current trend continued upward through the winter months, which is normally a down time for the area’s real estate activity.
Brunko has joined the bank as senior vice president, mortgage sales manager, and will lead the bank’s mortgage sales team. Trina Dusenbury, CCNB’s senior vice president, mortgage banking manager, will remain at the head of the bank’s mortgage operations team.
Brunko’s two employees at Investors Mortgage are also bank employees now.
“This is a perfect for us,” Brunko said, noting that the bank has a scope of operation that can do nothing but enhance his ability to produce mortgage loans.
Brunko said times have been difficult for Investors Mortgage since the economic meltdown in 2008. He said Investors Mortgage was generating $100 million in mortgage loans a year prior to the stock market plunge. That shrank to $20 million afterwards.
Brunko said the post-meltdown world left him with less control over mortgage financing and took away some of the products he was able to offer customers.
Brunko said the face of the local market is changing from one dominated by investors to more buyers who plan to live in their homes.
Both men noted that the area continues to have healthy population growth, and while they expect the mortgage business to continue to benefit from it, neither expect another housing bubble.
The current growth is gradual, not a spike like the situation that led to the recently-burst bubble, they said.
Bolchoz said the acquisition fits nicely into CCNB’s growth plan. The bank now has a branch in Garden City, a mortgage production facility in North Myrtle Beach and its headquarters at 38th Avenue North and Grissom Parkway.
Bolchoz agreed that the bank will want its mortgage business to have a face throughout the area, which he said could mean establishing some standalone mortgage offices.
Contact STEVE JONES at 444-1765.