OppFi Announces Definitive Agreement to Acquire BNCCORP, Inc. and BNC National Bank and the Elimination of Up-C Structure
Rhea-AI Summary
OppFi (NYSE: OPFI) signed a definitive agreement to acquire BNCCORP and BNC National Bank for approximately $130 million in a cash-and-stock deal, combining OppFi's digital lending platform with BNC's national bank charter and ~$1.1B in assets.
The transaction values BNCC at ~$19.375 cash plus 1.90 OppFi shares per BNCC share, leaves OppFi shareholders with ~93% of the combined company, targets at least $60M first-year synergies and forecasts >25% adjusted EPS accretion in 2027 and >40% in 2028.
Positive
- Transaction values BNCC at approximately $130 million
- BNC brings ~$1.1 billion in total assets and ~$1.0 billion in deposits (12/31/2025)
- Access to BNC’s low-cost deposit base (cost 2%) for diversified funding and lower funding costs
- Targeted synergies of $60M (year 1), $90M (year 2), and $115M (year 3)
- Projected Adjusted EPS accretion of >25% in 2027 and >40% in 2028
Negative
- Consideration represents approximately 1.2x BNCC book value ($107M at 12/31/2025)
- Early termination payment of the TRA totaled approximately $40.8M cash
- Transaction remains subject to OCC, Federal Reserve and FDIC approvals and BNCC stockholder vote
- OppFi will convert to a bank holding company and collapse its Up-C, triggering structural and regulatory transition
News Market Reaction – OPFI
In the Apr 29 session, OPFI gained 2.00%, reflecting a moderate positive market reaction. Argus tracked a peak move of +5.0% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Acquisition Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 01 | Strategic acquisition | Positive | -4.9% | Acquired 35% of Bitty Advance, entering small business financing with accretive terms. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The last acquisition headline was positioned as earnings-accretive yet saw a -4.92% next-day move, indicating prior investor skepticism toward M&A even when framed positively.
In August 2024, OppFi announced an acquisition of a 35% equity interest in Bitty Advance to enter small business financing. That deal was described as immediately accretive, with an expected annual EPS contribution of $0.03, yet the stock moved -4.92% over the next 24 hours. Today’s announcement extends the acquisition strategy to a full bank platform and corporate simplification, continuing the shift toward a more integrated, diversified financial services model.
Key Terms
up-c structure financial
c-corp financial
tax receivables agreement (tra) financial
bank holding company regulatory
small business administration (sba) lending financial
total return swaps financial
registration statement on form s-4 regulatory
proxy statement/prospectus regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Transformative
Positions OppFi for accelerated geographic expansion and product diversification
Enhances financial profile and strengthens balance sheet to support sustained growth
Expect substantial stockholder value creation with adjusted EPS accretion of
Strategic Acquisition of BNCCORP, Inc.
The transaction unites two complementary, market-leading businesses, combining OppFi's sophisticated online lending platform with BNC's national bank charter and diversified banking infrastructure to create a stronger, more diversified financial services provider. BNC is a nationally chartered commercial bank headquartered in
Under the terms of the agreement, BNCC stockholders will receive
"The transformative combination of OppFi's digital-first platform and BNC's national bank charter unlocks significant opportunities for growth and product diversification," said Todd Schwartz, CEO and Executive Chairman of OppFi. "Combining our operations under unified regulatory supervision by the OCC and Federal Reserve simplifies and strengthens our compliance and risk management. This will position OppFi/BNC for long term scalability and sustainable growth. We are excited to get to work with BNC's team to maximize the strengths of our businesses and continue to find ways to better serve customers who have been traditionally underserved by banks."
Michael Vekich, BNCC Chairman added, "This is an exciting opportunity to align our community-focused banking tradition with OppFi's world-class digital innovation. Together, we will bring new capabilities and product options to customers. This is a significant moment in our proud history."
"This transaction significantly strengthens our capital base, enabling us to maximize our growth potential. With greater financial flexibility and enhanced digital capabilities, we will be well positioned to elevate the customer experience and better serve our customers as their needs continue to evolve," said Dan Collins, BNCC President and CEO.
Compelling Strategic and Financial Benefits
This transaction strengthens OppFi's strategic goals and offers compelling benefits for customers and stockholders, including:
- Product and Operational Simplification: Offering centralized lending and deposit products under unified regulatory supervision by the Federal Reserve and Office of the Comptroller of the Currency (OCC), aligning compliance, risk management and back-office operations.
- Significant Growth and Diversification: Expanding OppFi's ability to deliver a comprehensive suite of financial products in more states, including Small Business Administration (SBA) lending, secured consumer lending and wealth management.
- Enhanced Balance Sheet Strength: Access to BNC's stable, low-cost deposit base— which carries a cost of less than
2% —will provide diversified funding opportunities and lower funding costs. - Increased Financial Inclusion: Leveraging OppFi's machine learning and analytics to allow BNC to serve more individuals and communities with convenient, transparent banking services.
Transaction Details and Leadership
- The transaction has been unanimously approved by the boards of both companies. The transaction is subject to BNCC stockholder approval, regulatory approvals from the OCC, the Federal Reserve and the FDIC, and other customary closing conditions. The transaction is expected to close during the fourth quarter of 2026. No vote of OppFi's stockholders is required in connection with the transaction.
- For the year ending December 31, 2025, BNC generated
$51 million $10 million $107 million - OppFi stockholders will own approximately
93% and BNCC stockholders will own7% of the combined company following closing. - OppFi expects to generate substantial synergies of at least
$60 million $90 million $115 million - The transaction is expected to be significantly accretive, generating Adjusted EPS accretion of more than
25% in 2027 and more than40% in 2028 - The combination of OppFi and BNC creates a banking organization that will be well capitalized with significant liquidity, with expected adjusted return on assets and adjusted return on equity generation by 2028 of
10% + and35% +, respectively. - Following the closing, OppFi Inc. will become a bank holding company and plans to contribute substantially all of its assets, liabilities and operations into its bank subsidiary, OppFi Bank, N.A. BNC will continue normal operations as a community banking division within OppFi Bank, and will continue to be led by Dan Collins and the existing BNC management team. Todd Schwartz will lead the combined company as Chief Executive Officer and Executive Chairman. Michael Vekich will serve on the board of directors of OppFi Bank.
Simplifying the Corporate Structure
In addition, OppFi has simplified its corporate structure by collapsing its Up-C structure into a traditional C-Corp model. This strategic shift is designed to achieve tax efficiency and streamline OppFi's accounting and reporting requirements.
As a result of this simplification, all OppFi stockholders now hold Class A common stock with identical economic and voting interests. Opportunity Financial, LLC ("OpCo") has become a wholly-owned subsidiary of OppFi.
"As we continue to evolve, simplifying our corporate structure is a logical step to support the long-term scalability of our platform," said Schwartz. "By moving to a traditional C-Corp model, we aim to remove administrative complexity and ensure our structure aligns with the rigorous standards of federal bank supervision".
As part of the reorganization, OppFi has terminated the Tax Receivables Agreement (TRA) dated July 20, 2021. This resulted in an early termination payment at a discounted amount totaling approximately
The simplification of the corporate structure, including termination of the TRA, was approved by a committee comprised of independent directors of OppFi, that was empowered to negotiate (or oversee the negotiation of) and to reject such transactions, and that was advised by independent
Advisors
Sidley Austin LLP is serving as legal advisor and Moelis & Company is serving as financial advisor to OppFi. Fredrikson & Byron P.A. is serving as legal advisor and Piper Sandler & Co. is serving as financial advisor to BNCC.
About OppFi
OppFi (NYSE: OPFI) is a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans. Through this transparent and responsible platform, which emphasizes financial inclusion and exceptional customer experience, the Company assists consumers who are underserved by traditional financing options in building improved financial health. OppLoans by OppFi maintains a 4.4/5.0 star rating on Trustpilot based on over 5,400 reviews, positioning the Company among the top consumer-rated financial platforms online. OppFi also holds a
About BNC
BNC National Bank is a community-focused commercial bank headquartered in
Important Additional Information will be Filed with the SEC
In connection with the proposed transaction, OppFi Inc. will file with the
Participants in a Solicitation
This communication is not a solicitation of a proxy from any security holder of BNCC or OppFi. However, OppFi, BNCC and certain of their respective directors and executive officers may be deemed to be participants in a solicitation of proxies from the stockholders of BNCC in respect of the proposed transaction. Information about OppFi's directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2025 and other documents filed by OppFi with the SEC. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities of OppFi or a solicitation of any vote or approval with respect to the proposed transaction by OppFi or BNCC, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the
Contacts:
Investor Relations: Mike Gallentine
Head of Investor Relations
mgallentine@opploans.com
Media Relations:
media@oppfi.com
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "possible," "continue," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, statements regarding OppFi's proposed acquisition of BNCC, including the anticipated timing, structure, benefits and strategic rationale of such transactions, OppFi's expectations with respect to the geographic expansion and product diversification that may come from the acquisition, OppFi's expectations with respect to simplifying its corporate structure, OppFi's expectations with respect to its full year 2026 guidance, the future performance of OppFi's platform and underwriting models, and expectations for OppFi's growth and future financial performance. These forward-looking statements are based on OppFi's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi's control and are difficult to predict. Factors that may cause such differences include, but are not limited to, risks related to the proposed acquisition of BNCC and the related corporate restructuring transactions, including the risk that the transactions may not be completed in a timely manner or at all; the failure to satisfy closing conditions or obtain required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement, including the payment of any termination fee due thereunder; the impact of the transactions on OppFi's governance structure; integration or execution challenges; adverse reactions from customers or stockholders; the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, the impact of tariffs, and tightening of credit markets on OppFi's business; the impact of challenging macroeconomic and marketplace conditions; the impact of stimulus or other government programs; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted Net Income, Adjusted EPS, Adjusted EPS accretion, adjusted return on assets and adjusted return on equity. Adjusted EBT is defined as Net Income, adjusted for (1) income tax expense; (2) change in fair value of warrant liabilities; (3) other adjustments, net; and (4) other income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate for each period presented that reflects the
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SOURCE OppFi