Fishers-based First Internet Bank is planning to acquire the small business lending division of First Colorado National Bank. The deal, valued at more than $150 million, is expected to close early in the third quarter.
The subsidiary of First Internet Bancorp (Nasdaq: INBK) says the balance of outstanding loans to be acquired totals about $39 million. The deal also includes a servicing portfolio of guaranteed loans sold in the secondary market, totaling some $112 million.
First Internet Bank will also be taking on various loan production, credit, portfolio management, and serving personnel who operate out of two Chicago-area offices and one Indianapolis-area office.
"We are excited about this acquisition as it will significantly accelerate our efforts to expand access to affordable loans and serve our nation’s entrepreneurs," said David Becker, chief executive officer of First Internet Bancorp. "Last year, we began building a team with deep SBA experience because we see a tremendous opportunity to promote economic growth and job creation through government-guaranteed loan programs, while diversifying our sources of revenue in a capital efficient manner."
The acquisition remains subject to governmental and regulatory approvals, as well as customary closing conditions.