Piedmont Federal's Partnership with M2

Mutual banks are in the relationship business.

M2, First Mutual Holding Co.’s (FMHC) mortgage fulfillment service, is no different.

Ever since Piedmont Federal Bank, a community mutual bank based in Winston-Salem, North Carolina, partnered with M2 for secondary mortgage services, their resulting growth allowed them to enhance client experience and achieve success in a rapidly evolving financial landscape. They also gained access to a suite of tools and resources, enabling them to elevate their services and capabilities.

“The conversation began with a simple question: how do we work together to solve the common problems that we have?” says David P. Barksdale, President and CEO at Piedmont Federal Bank. “It evolved into the fact that we need a mortgage fulfillment center, which eventually led to the partnership between us and M2.”

Piedmont Federal Bank recognized the importance of introducing a mortgage fulfillment service as part of its commitment to meeting the evolving needs of its clients.

“M2 expanded our product offerings and the availability to help many more clients from a diverse group,” says Neal S. Parnell, Chief Retail Banking Officer at Piedmont Federal Bank. “This will help us grow our bank in the future.”

M2 provides access to a mortgage fulfillment solution that streamlines the operational functions of mortgage lending on a per-loan-cost basis, including operational efficiencies, streamlined processes, and cost savings. These solutions helped Piedmont Federal Bank enhance its competitive position in the market, while delivering the one-on-one client service that their community came to expect.

The implementation process was smooth thanks to M2’s commitment to a personalized experience.

M2 built the processes and procedures from scratch, taking Piedmont Federal Bank from being a portfolio lender to becoming a full-service mortgage lending bank with products like first-time homebuyer, primary and secondary residences, investment property, construction to permanent loans, and more. Paul Thompson, President and CEO of M2, made a trip to their headquarters and walked the team through every step – all the way from infancy to implementation.

“The M2 team was very helpful during the beginning steps,” says Michele Mitchell, Director of Mortgage Banking at Piedmont Federal Bank. “They really eased our minds. Our loan officers met them, knew who they were dealing with, and that made a huge difference.”

Piedmont Federal Bank also benefited from the collaborative network established through this partnership. By being part of a larger community of like-minded institutions, the bank gained insights and best practices, enabling it to navigate industry challenges and adapt to a changing market.

“When we began exploring a secondary mortgage partner, I was adamant about partnering with folks we know,” says Barksdale. “The mutual model is the ultimate form of community banking because we’re owned by our community. If we’re going to leverage that relationship model, then we must do it with somebody with which we have an existing relationship. It’s important to be able to pick up the phone to figure out any issues or answer any questions.”

“At M2, it’s important for us to be responsive when issues arise, and we are extremely focused on that,” continues Thompson. “When our phone rings, we’re available to resolve any potential problems as quickly as possible and we’re proud to deliver on that commitment.”

Beyond the tightknit relationship, Piedmont Federal Bank has seen results with mortgage production increasing more towards the secondary market.

“It’s all about telling the story to our market that we no longer only offer portfolio options – we’re now a full-service mortgage operation,” says Parnell. “We’re starting to see that increase and it will continue to migrate. The competitiveness of the interest rate environment right now is crucial and M2 has continued to work with us by customizing our rates and our experience.”

Partnerships like the one between Piedmont Federal Bank and M2 demonstrate the potential for mutual success and growth as the financial landscape continues to evolve. Through continued collaboration and a focus on meeting customer needs, Piedmont Federal Bank is confident they will build on their achievements.

“I highly recommend M2 for any other banks that are looking for a full-service mortgage lending company,” says Parnell. “The team will be with you every step of the way. The relationship extends beyond the implementation process, too. Paul talks to me weekly, if not daily, and the willingness and openness to talk through ideas is very important because it helps us look for new ways to increase profitability.”

“This has not only been a success, but it leads to other opportunities for shared services,” continues Barksdale. “That’s a huge lift for the mutual banking industry.”