On November 21, 2022, Smith Financial Corporation, led by First National Financial Corp. chair and co-founder Stephen Smith, agreed to acquire Toronto-based alternative mortgage lender Home Capital Group Inc. The deal valued Home Capital at approximately $2.27 billion (US$1.7 billion). This acquisition marks a significant merger in Canada's alternative lending sector, bringing together two major players under one umbrella.

Stephen Smith, a prominent figure in the financial sector, is also the largest shareholder of EQB Inc. (formerly Equitable Group Inc.), known for its residential and commercial real estate lending services and personal banking offerings.

Legal and financial advisories played a pivotal role in this transaction. Torys LLP acted as legal counsel for Home Capital, with BMO Capital Markets and TD Securities serving as financial advisors. Additionally, Deloitte LLP provided independent financial advice to Home Capital’s board of directors. For Smith Financial Corporation (SFC), Stikeman Elliott LLP provided legal counsel, and RBC Capital Markets was the financial advisor.

Alan Hibben, Home Capital’s board chair, affirmed the board’s thorough review and approval of the proposal from SFC, highlighting the transaction's fairness and beneficial outcome for shareholders. Yousry Bissada, Home Capital’s president and CEO, acknowledged the transaction as a testament to the organization's value and strength.

Stephen Smith praised Home Capital for its solid partnerships with mortgage brokers, excellent customer relationships, and a strong track record of building quality assets. He expressed confidence in Home Capital's future and its strategic significance in the industry.