Forty mortgage professionals located in California have transitioned to the San Diego-based lender, including processors, transaction coordinators and loan officers.

A "large number of originators" from McLean Mortgage have joined the California-based lender.

With the acquisition, the Lake City, Florida-based community bank will nab a consumer-direct platform and expand its footprint in the Midwest.

Banks could be in for a long, slow trickle of bank failures and consolidation in the coming months and years, particularly if inflation persists and interest rates keep rising. A downturn in commercial real estate could add to banks' problems.

Thimble, founded in 2016, provides insurance "in minutes" to a plethora of industries including pet, beauty and cleaning services through its mobile app, website or over the phone.

The Federal Trade Commission is seeking a temporary restraining order to prevent the deal from being completed prior to its July 12 administrative hearing.

But the deal propels the four-year old buyer of its wholesale origination operation, The Loan Store, into the national spotlight.

At the beginning of March, over 40 LOs were sponsored by the lender, but as of April 6, 10 LOs remain registered with it on the Nationwide Multistate Licensing System & Registry.

The president of originations at the public company, Phil Shoemaker, will take over as CEO of the acquiring firm.

The neobank purchased the fintech lender in an all-cash offer, but did not disclose the price tag.