I’m pretty sure these two small banks and their activities are below the threshold of regular attention but I wonder if you have any insight into what may be going on.

BMTX is an online savings “bank”, which seems to have found success marketing to college students. It is affiliated with a real bank to manage the money, etc.

FSWA is a nano-bank, here in Seattle, with pretty much the normal local services of a small commercial bank.

BMTX has made an offer for FSWA as of late last year. Nothing too unusual about this, I guess.

But, the total cash value of the transaction seems awfully high for BMTX’s balance sheet…


The offer has generated a fistful of lawsuits from law firms looking into whether the transaction is “fair” (I have no idea). Are they all just looking for a chance to be bought off? Seems like pretty small pickings…

If it is of interest, would love your insights…


This is not something I really follow. But in general all these deal chaser law firms come out of the woodwork when a deal is announced. Mostly, they’re just looking for a payday. Very typical.

Why do you say it’s big for their balance sheet? They have a market cap of $88mn, so the $23 mn acquisition price isn’t insignificant to them. How are they financing the deal? Plus, it says “up to $7.22 in cash,” presumably indicating some kind of earn-out or something.



Sorry, what I meant to say was what you indicated—that $23mm was a lot of money for a small-cap co.

I’ll poke around for the terms…


From the press release…

BM Technologies (BMTX +17.9%) agrees to merge with Seattle-based community bank First Sound (OTCPK:FSWA) for $23M payable in consideration.

BMTX will pay up to $7.22 in cash for each share of First Sound Bank’s common stock. FSWA stock last closed at $5.25, up 31% on Monday.

Late November, 2021

Might have overpaid, as well…