CapitalSource has acquired the assets of SBA lender MainStreet Lender LLC, for $100 million.
CapitalSource Inc. (NYSE: CSE) today announced that it has acquired substantially all of the assets of SBA lender MainStreet Lender LLC (“MainStreet”) for a total purchase price of $100 million. The asset purchase includes the acquisition by CapitalSource Bank of a $111 million portfolio of small balance SBA and conventional loans, and the acquisition by the Parent Company of a non-bank SBA license, servicing rights associated with the bank-acquired portfolio and intellectual property. Additionally, MainStreet origination, underwriting and servicing personnel will join CapitalSource to manage and grow the SBA portfolio.
“This acquisition is consistent with our articulated strategy of building our franchise with asset origination platforms that focus on commercial lending, which we view of particular value as the banking industry will likely face a significant asset gap across the next several years,” said John K. Delaney, CapitalSource Executive Chairman.
“We are very pleased to add the experienced SBA lending professionals from MainStreet to our national origination team,” remarked James J. Pieczynski, CapitalSource Co-CEO. “Recent SBA program enhancements are expected to result in substantial additional activity in coming months, so we see this as a growth opportunity for CapitalSource as well as a chance to support the nation’s small and mid-size businesses which are the principal drivers of the U.S. economy.”
“We are enthusiastic about the opportunities presented by adding our established SBA platform to the CapitalSource national lending franchise,” said George Harrop who will be joining CapitalSource to lead the SBA lending team. “The talented professionals who will be coming with me to CapitalSource have worked together for many years. We will be able to immediately begin making new loans, since all necessary regulatory approvals have been obtained.”
CapitalSource Inc. (NYSE: CSE) is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. As of December 31, 2009, CapitalSource had total commercial assets of $9.2 billion and $4.5 billion in deposits. The Company is headquartered in Chevy Chase, MD. Visit www.capitalsource.com for more information.