Gateway First Bank, a prominent Oklahoma-based financial institution, has officially announced a definitive agreement to acquire Colonial Savings F.A., a move that marks a significant expansion of Gateway’s mortgage-focused banking operations into the highly competitive Texas market. While the specific financial terms of the transaction were not disclosed to the public, the acquisition represents a strategic alignment between two organizations with deep roots in both traditional community banking and the specialized mortgage lending sector. The deal is structured to integrate Gateway’s technological scale and robust mortgage origination platform with Colonial’s established local presence and decades-long customer relationships in the Greater Fort Worth area.
The transaction, which has been approved by the boards of directors of both institutions, is currently slated for completion in the first quarter of 2027. This timeline remains subject to standard regulatory approvals from federal and state banking authorities, as well as the fulfillment of customary closing conditions. Upon completion, the merger will see Colonial’s six physical locations in the Fort Worth market rebranded or integrated into the Gateway ecosystem, providing the Oklahoma bank with a significant physical foothold in one of the fastest-growing metropolitan areas in the United States.
Strategic Rationale and Market Context
The acquisition comes at a time when mid-sized banks are increasingly seeking scale to offset the rising costs of technology, regulatory compliance, and the inherent volatility of the mortgage market. Gateway First Bank has distinguished itself in recent years by successfully navigating the transition from a pure-play independent mortgage bank (IMB) to a chartered financial institution. This hybrid model allows the bank to leverage the stable deposit base of a traditional bank to fund its aggressive mortgage lending operations, a strategy that has proven resilient during periods of interest rate fluctuation.
Colonial Savings, founded in 1952, brings more than seven decades of history to the table. Based in Fort Worth, Colonial was long recognized as a pioneer in the integrated mortgage and banking space. However, like many specialized lenders, Colonial faced significant headwinds during the aggressive interest rate hikes initiated by the Federal Reserve in 2022 and 2023. These macroeconomic shifts led to a sharp decline in mortgage origination volumes across the industry, prompting Colonial to strategically pivot its business model. By acquiring Colonial, Gateway is not just buying assets; it is acquiring a legacy brand with deep community ties in a region where Gateway has long sought to deepen its influence.
The Evolution of Gateway First Bank
Gateway’s trajectory has been one of rapid growth and structural transformation. Originally known as Gateway Mortgage Group, the company executed a landmark merger with Farmers Exchange Bank in 2019 to form Gateway First Bank. This move was viewed by industry analysts as a blueprint for other independent mortgage lenders seeking the stability of a bank charter.
Since that merger, Gateway has leaned heavily into its dual identity. According to recent data from RETR, the bank has maintained a formidable mortgage presence, originating approximately $1.4 billion in mortgages year-to-date in 2026. This follows a strong performance in 2025, where the bank recorded $2.5 billion in originations, a notable increase from the $2.2 billion reported in 2024. This upward trend in production suggests that Gateway’s internal processes and loan officer productivity have remained high despite broader industry challenges.
Currently, Gateway reports total assets exceeding $2 billion. Its physical footprint includes multiple banking centers across Oklahoma and a national mortgage network comprising more than 60 locations. With a workforce of approximately 600 employees and a dedicated team of 213 loan officers, Gateway possesses the infrastructure necessary to absorb Colonial’s operations while maintaining its service standards.
The History and Transformation of Colonial Savings
Colonial Savings F.A. has historically been a cornerstone of the Fort Worth financial community. For much of its history, it operated as a comprehensive provider of residential mortgage loans, commercial banking, and insurance services. At its peak, Colonial was one of the largest privately held mortgage servicers in the country.
However, the period between 2022 and 2024 marked a turning point for the institution. In May 2023, amid a climate of rising interest rates and a severe shortage of housing inventory, Colonial announced its exit from the mortgage origination business. Prior to this announcement, the company had seen its production fall by nearly one-third, closing roughly $470 million in mortgages in the 12 months leading up to the exit.
Following the cessation of its origination activities, Colonial narrowed its focus to full-service retail banking and the management of its massive mortgage servicing portfolio. By mid-2024, Colonial reported a servicing portfolio valued at approximately $20 billion and total bank assets of about $1 billion. In a further move to streamline its balance sheet, the bank eventually exited the servicing business as well, transitioning toward a leaner, relationship-driven banking model. This transition made Colonial an attractive acquisition target for an institution like Gateway, which has the appetite and the capacity to revitalize the mortgage capabilities of the Colonial branch network.
Executive Leadership and Vision
The leadership teams of both banks have emphasized the cultural and operational alignment of the two firms. Kyle Hubbard, CEO of Gateway First Bank, highlighted the importance of Colonial’s community-centric approach.
“Colonial has built an impressive legacy centered on exceptional service, strong community relationships, and helping families and businesses achieve their financial goals,” Hubbard stated. “This acquisition is a natural fit for Gateway as we continue to expand our footprint in Texas and bring our diversified banking and mortgage products to a broader audience.”
Jim DuBose, President and CEO of Colonial Savings, echoed these sentiments, focusing on the shared values of the two organizations. “Both organizations share a belief that financial services should be built around relationships, trust, and local decision-making,” DuBose said. “Joining forces with Gateway allows our customers to benefit from a wider array of products and the technological resources of a larger institution while maintaining the high-touch, local service they have come to expect from Colonial.”
The retention of local talent is expected to be a priority during the integration process. In many bank mergers of this nature, the "human capital"—the loan officers and branch managers who hold the local relationships—is considered the most valuable asset. Gateway has indicated that it intends to leverage Colonial’s existing staff to maintain continuity for Texas customers.
Financial Advisory and Regulatory Path
The execution of the deal involved specialized financial advisors on both sides. Gateway First Bank was advised by Performance Trust Capital Partners LLC, a firm known for its expertise in community bank capital structures and M&A. Colonial Savings was advised by Olsen Palmer LLC, a nationally ranked investment banking firm that specializes in advising community banks on strategic options.
The path to the Q1 2027 closing will involve rigorous scrutiny from regulators, including the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). Regulators will examine the pro forma capital levels of the combined entity, the impact on competition in the Fort Worth market, and the bank’s ability to meet Community Reinvestment Act (CRA) requirements. Given Gateway’s track record of maintaining a strong capital position and its successful history of integrating previous acquisitions, analysts expect the regulatory process to proceed without significant hurdles.
Implications for the Texas Housing Market
The acquisition of Colonial by Gateway is particularly significant given the current state of the Texas real estate market. The Greater Fort Worth area, along with the broader Dallas-Fort Worth-Arlington metroplex, has consistently ranked among the top regions in the country for population growth and corporate relocation. This growth has sustained demand for residential mortgages even in high-interest-rate environments.
By integrating Colonial’s six Fort Worth locations, Gateway positions itself to capture a larger share of this lucrative market. The "mortgage-centric" bank model is uniquely suited for Texas, where homeownership remains a primary driver of economic activity. Gateway’s ability to offer a full suite of banking products—including checking, savings, and commercial loans—alongside specialized mortgage products like jumbo loans, FHA, and VA loans, provides a competitive advantage over non-bank lenders who cannot offer a comprehensive financial relationship.
Furthermore, the deal highlights a continuing trend of consolidation in the banking sector. As smaller institutions find it increasingly difficult to compete with the technology budgets of national "money center" banks, merging with regional powerhouses like Gateway provides a way to stay relevant. For Gateway, the acquisition is a capital-efficient way to grow its deposit base, which in turn lowers its cost of funds for mortgage lending.
Timeline of Key Events
To understand the context of this acquisition, it is helpful to review the timeline of both institutions over the last several years:
- 2019: Gateway Mortgage Group merges with Farmers Exchange Bank, creating Gateway First Bank and establishing one of the largest mortgage-focused banks in the U.S.
- 2022-2023: The Federal Reserve initiates a series of rapid interest rate hikes to combat inflation, leading to a nationwide slowdown in mortgage refinances and originations.
- May 2023: Colonial Savings announces its exit from the mortgage origination business after 71 years, citing market conditions.
- 2024: Gateway reports growth in its mortgage division, reaching $2.2 billion in annual originations. Colonial completes the sale or transfer of much of its $20 billion servicing portfolio.
- 2025: Gateway’s origination volume climbs to $2.5 billion, signaling a recovery in the mortgage sector.
- Late 2026: Gateway and Colonial announce the definitive acquisition agreement.
- Q1 2027: Expected closing of the transaction and start of the brand integration process.
Analysis of the Combined Entity
Once the acquisition is finalized, the combined entity will boast a balance sheet with more than $3 billion in assets and a formidable presence across two states. For Gateway, the move represents a shift from being an Oklahoma bank with a Texas presence to being a true regional powerhouse in the Southern Plains.
The integration of Colonial’s $1 billion in assets will provide Gateway with additional liquidity, which is crucial for a bank that originates billions of dollars in loans annually. In the mortgage industry, liquidity is the lifeblood of the business; having a stable base of core deposits allows a bank to hold more loans on its balance sheet or time its sales to the secondary market more effectively, maximizing profitability.
From a consumer perspective, the merger is likely to result in expanded digital offerings for former Colonial customers. Gateway has invested heavily in its digital mortgage platform and mobile banking technology, areas where smaller institutions often struggle to keep pace. Conversely, Gateway’s existing customers in Texas will benefit from an increased number of physical branch locations for their in-person banking needs.
Conclusion
The acquisition of Colonial Savings F.A. by Gateway First Bank is a strategic maneuver that reflects the current realities of the American financial landscape. It combines the historical stability and local trust of a legacy Texas institution with the aggressive growth and modern mortgage capabilities of an Oklahoma leader. As the industry moves toward the 2027 closing date, the focus will remain on a seamless transition for customers and the successful integration of two cultures that, while different in their recent history, share a common goal of community-focused financial service. This deal not only reshapes the banking map in Fort Worth but also reinforces Gateway’s position as a dominant force in the intersection of traditional banking and modern mortgage lending.
