Gateway First Bank, a leading financial institution headquartered in Jenks, Oklahoma, has officially entered into a definitive agreement to acquire Colonial Savings F.A., a storied mortgage and banking franchise based in Fort Worth, Texas. This acquisition represents a significant milestone in Gateway’s ongoing strategy to solidify its presence in the Texas market, specifically within the high-growth North Texas region. While the financial specifics of the transaction have not been publicly disclosed, the move is widely viewed by industry analysts as a synergistic alignment of Gateway’s robust mortgage infrastructure and Colonial’s deep-rooted community banking ties. The deal is slated to close in the first quarter of 2027, contingent upon the receipt of necessary regulatory approvals and the satisfaction of standard closing conditions.
The merger brings together two entities with distinct but complementary histories in the financial services sector. Gateway First Bank has distinguished itself through a unique business model that blends the high-volume capabilities of a national mortgage lender with the stability and diversified services of a traditional bank charter. By acquiring Colonial Savings, Gateway gains an immediate and established foothold in the Greater Fort Worth market, inheriting six physical locations and a loyal customer base that Colonial has cultivated over several decades.
A Strategic Union of Mortgage Expertise and Community Banking
The acquisition is designed to leverage the strengths of both organizations to create a more formidable competitor in the regional banking landscape. Gateway First Bank has long championed a "mortgage-centric" banking philosophy. This approach was born out of its history as one of the largest independent mortgage companies in the United States before it transitioned into a bank charter. This evolution allowed the company to diversify its revenue streams, utilizing the deposits from its banking operations to fuel its mortgage lending activities, thereby creating a more resilient financial structure during periods of market volatility.
According to the most recent data, Gateway has demonstrated consistent growth in its lending operations. In 2024, the bank recorded $2.2 billion in mortgage originations, a figure that climbed to $2.5 billion in 2025. As of the current year-to-date figures for 2026, the bank has already surpassed $1.4 billion in originations. With a workforce of approximately 600 employees and more than 60 locations nationwide, including a dedicated team of over 210 loan officers, Gateway possesses the operational scale necessary to absorb and revitalize Colonial’s existing framework.
Colonial Savings, on the other hand, brings a legacy of localized service and a specialized history in mortgage servicing. Founded in 1952, Colonial was a pioneer in the integrated mortgage and banking space for over 70 years. However, the company faced significant headwinds in recent years due to macroeconomic pressures. In May 2023, Colonial made the strategic decision to exit the mortgage origination business. At that time, the company’s production had declined by approximately one-third, a casualty of the broader industry struggle against rising interest rates and a persistent shortage of housing inventory. Following that exit, Colonial pivoted its focus toward full-service banking and managing its substantial mortgage servicing portfolio, which was valued at approximately $20 billion in mid-2024.
The Evolution of Colonial Savings and Market Dynamics
The journey of Colonial Savings reflects the broader shifts within the American mortgage industry over the last few years. In the 12 months leading up to its exit from originations in 2023, the firm closed approximately $470 million in mortgages. Despite its exit from the front-end lending process, Colonial maintained a significant balance sheet, with assets totaling roughly $1 billion.
The decision to sell to Gateway comes after a period of internal restructuring for Colonial. Having previously signaled an exit from the servicing business as well, the leadership at Colonial sought a partner that could honor its commitment to the Fort Worth community while providing the technological and capital resources required to thrive in a modern banking environment. Jim DuBose, President and CEO of Colonial Savings, emphasized that the decision was rooted in shared values. “Both organizations share a belief that financial services should be built around relationships, trust, and local decision-making,” DuBose stated, highlighting the cultural alignment that paved the way for the merger.
Kyle Hubbard, CEO of Gateway First Bank, echoed these sentiments, noting that Colonial’s legacy was a primary driver for the acquisition. “Colonial has built an impressive legacy centered on exceptional service, strong community relationships, and helping families and businesses achieve their financial goals,” Hubbard said. For Gateway, the acquisition is not merely about increasing asset size, but about inheriting a "relationship-first" brand that fits into its broader mission of community-focused banking.
Chronology of the Gateway-Colonial Transition
The path to this acquisition can be traced through several pivotal moments in both companies’ recent histories:
- May 2023: Colonial Savings announces its official exit from the mortgage origination business, citing market challenges including high interest rates and low inventory.
- 2024-2025: Gateway First Bank experiences a surge in mortgage volume, growing from $2.2 billion to $2.5 billion in annual originations, proving the viability of its hybrid banking model.
- Mid-2024: Colonial Savings reports a mortgage servicing portfolio of $20 billion and total assets of $1 billion, while beginning to scale back its servicing operations.
- Late 2025: Initial discussions between Gateway and Colonial begin as Gateway seeks to expand its footprint in the Texas "Texas Triangle" (Dallas-Fort Worth, Houston, Austin).
- Q4 2026: The formal agreement is signed and announced to the public, identifying Performance Trust Capital Partners LLC and Olsen Palmer LLC as the respective financial advisors.
- Q1 2027 (Projected): The transaction is expected to close, following a period of regulatory review by the Federal Deposit Insurance Corporation (FDIC) and the Oklahoma and Texas state banking departments.
Regional Economic Context: The North Texas Banking Boom
The acquisition is strategically timed to capitalize on the economic vitality of the Greater Fort Worth market. The Dallas-Fort Worth (DFW) metroplex remains one of the fastest-growing regions in the United States, characterized by a steady influx of corporate headquarters and a burgeoning population. This demographic shift has created a sustained demand for both residential mortgage products and commercial banking services.
By acquiring Colonial’s six locations in Fort Worth, Gateway First Bank positions itself to capture a larger share of this growing market. Unlike national "megabanks," Gateway’s model emphasizes local decision-making, which is often a preferred attribute for small-to-medium-sized businesses (SMBs) and local homebuyers in Texas. The addition of Colonial’s $1 billion in assets will push Gateway’s total asset base significantly higher, enhancing its lending capacity and competitive edge against other regional players.
Analysis of Implications for the Banking Industry
This deal is indicative of a wider trend of consolidation within the community banking and mortgage sectors. As regulatory costs rise and the technological requirements for digital banking become more demanding, smaller institutions like Colonial Savings often find it advantageous to merge with larger entities that possess greater economies of scale.
For Gateway, the "mortgage-centric" bank model provides a blueprint for other independent mortgage bankers (IMBs) looking to stabilize their earnings. By holding a bank charter, Gateway can access lower-cost deposit funding, which provides a significant advantage over non-bank lenders who must rely on more expensive warehouse lines of credit. This structural advantage is particularly evident in the current interest rate environment, where margin compression has forced many IMBs to scale back or exit the market entirely.
The acquisition also underscores the value of Mortgage Servicing Rights (MSRs). While Colonial’s website indicated an exit from the servicing business, the transition of such a massive portfolio ($20 billion as of 2024) suggests that the underlying data and customer relationships remain a valuable asset for an acquirer like Gateway. The ability to cross-sell banking products to mortgage servicing customers is a key component of Gateway’s growth strategy.
Advisors and Legal Framework
The complexity of merging a bank with a deep history in mortgage servicing requires specialized financial and legal guidance. Gateway First Bank was advised on the transaction by Performance Trust Capital Partners LLC, a firm known for its expertise in capital markets and strategic advisory for community banks. Colonial Savings was represented by Olsen Palmer LLC, a high-ranking investment banking firm that specializes in community bank mergers and acquisitions.
The transition period through Q1 2027 will involve a rigorous "due diligence" phase where Gateway will integrate Colonial’s systems, staff, and protocols. Customers of Colonial Savings can expect a phased transition, with both leadership teams emphasizing that maintaining service continuity is a top priority.
Looking Forward
As Gateway First Bank prepares to absorb Colonial Savings, the focus will remain on the execution of its diversified banking strategy. With more than $2 billion in assets already reported by Gateway prior to this deal, the combined entity is set to become a dominant regional force. The move not only secures Gateway’s future in Texas but also serves as a testament to the resilience of the mortgage-banking hybrid model in an ever-evolving financial landscape.
The successful integration of these two companies will likely be watched closely by industry peers as a case study in how to navigate the challenges of the modern mortgage market while building a sustainable, community-focused banking franchise. For the residents of Fort Worth and the broader Texas market, the merger promises a continuation of the local service they came to expect from Colonial, backed by the national scale and technological prowess of Gateway First Bank.
