Lender's CEO says move allows his firm to achieve "further synergies"
Community Heritage Financial, the holding firm of mortgage lender Millennium Financial Group (which does business as Mlend), announced that it has requested regulatory non-objection for Mlend to become a wholly-owned subsidiary of its Middletown Valley Bank business.
In a statement, Community Heritage confirmed that the change has been approved by all three boards.
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Mlend is a full-service mortgage lender with locations in Middletown, Crofton and Oakland, Maryland. Community Heritage acquired Mlend in 2018, where it continued as an independent operation under its holding-company structure.
Meanwhile, Middletown Valley Bank is a full-service commercial and retail bank with locations in the Maryland counties of Frederick, Garrett, and Washington, and in Franklin County, Pennsylvania.
“We believe that it is in the best interests of the company, the bank, and our stockholders, that Millennium become a wholly owned subsidiary of the bank in lieu of remaining a wholly-owned subsidiary of the company,” said Robert Goetz, president and chief executive officer of Community Heritage Financial. “This change in structure allows us to realize significant cost savings and operational efficiencies.”
For his part, Mlend president and CEO William Poffenbarger, Jr. said that by becoming a subsidiary of the bank, the lender achieves “further synergies, with each entity retaining its current brand strengths in the markets they serve.”
