The agreement, first announced in March 2024, was finalized after receiving regulatory approval and meeting all closing conditions.
Together, the two companies will now operate under the parent legal entity Fairstone Bank, bringing well-known brands like Home Trust, Oaken Financial, Home Bank, Fairstone, EdenPark, and Fig under one umbrella.
Scott Wood, President and CEO of Fairstone Bank, will lead the combined group, while Stephen Smith, founder and CEO of Smith Financial Corporation, will serve as Chair of the Board.
Yousry Bissada, previously CEO of Home Trust, takes on the role of Vice Chair of the Board.
According to Wood, the merger strengthens the group’s ability to offer a wide range of financial products, including residential and commercial mortgages, personal loans, GICs, and credit cards.
“I’m thrilled to join forces with the excellent team at Home Trust and combine our expertise to continue to improve and grow our businesses,” Wood said. “I look forward to collaborating with the talented teams across the new Fairstone Bank group to deliver exceptional value and innovation to our customers and partners across Canada.”
Stephen Smith shared a similar view, noting the increased capacity to address unmet financial needs. “Uniting these two great companies enhances our ability to serve the millions of Canadians whose financial needs are often overlooked by traditional banks,” he said.
Expanding reach and market presence
The merger positions Fairstone Bank as a leader in Canada’s alternative lending sector. The combined group now works with over 4,700 mortgage brokers and serves two million customers through a network of more than 255 branches nationwide.
Smith Financial now holds a majority voting interest in Fairstone Bank, with Centerbridge Partners, L.P., Ontario Teachers’ Pension Plan Board, and management retaining minority stakes.
Smith Financial Corporation is a family enterprise founded by Stephen Smith, one of Canada’s leading financial services entrepreneurs. Its portfolio includes holdings in Canada Guaranty Mortgage Insurance Company, First National Financial Corporation, Glass Lewis & Co., and Peloton Capital Management.
Click here to learn more about what this deal means for customers and brokers.
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fairstone bank Home Trust mergers and aquisitions Oaken Financial Scott Wood smith financial stephen smith Yousry Bissada
Last modified: January 9, 2025