First American Bank has finalized an agreement to purchase James Mortgage Corp., which was based in Johnston. The Clive-based bank will name the new division First American Bank Home Mortgage.

“This purchase allows us to have a much broader mortgage program that will allow us to expand and work with many new customers,” said Doug Bass, president of Stark Bank Group in Fort Dodge, First American’s holding company. The privately held companies did not disclose the terms of the purchase.

Larry James, who founded James Mortgage in 1998, has more than 35 years of experience in the mortgage industry and will serve as president of First American’s mortgage division.

According to the Des Moines Business Record’s 2007 Book of Lists, James Mortgage closed 739 mortgage loans in 2005 with a value of $111.9 million, which made it the fourth-largest mortgage lender in terms of dollar volume in Greater Des Moines.

In May 2006, First American purchased Waukee State Bank, enabling it to expand to 16 branches in Iowa. It also operates five branches in Southwest Florida. The bank controls assets of $1.6 billion.

The bank said it has retained all 20 of James Mortgage’s employees. The division will be based at First American’s Clive office at 12333 University Ave. in Clive, with loan officers to be located at most of the bank’s branches.