BRIDGEPORT, Conn., July 19, 2017 /PRNewswire/ -- People's
United Bank, N.A. announced today that it has entered into an
agreement to acquire LEAF Commercial Capital, Inc. Based in
Philadelphia, PA, LEAF is one of
the largest, independent commercial equipment finance companies in
the U.S., with approximately $500
million of annual originations.
"We are pleased to welcome the talented team at LEAF Commercial
Capital to People's United Bank," said Jack
Barnes, President and Chief Executive Officer. "LEAF
is a highly-scalable commercial lending platform with attractive
risk-adjusted returns and a complementary expansion of our existing
specialty finance businesses. At closing, our equipment
finance units will have approximately $4
billion of assets and rank as the 16th largest
bank-owned equipment finance entity in the
country."
Since 2002, LEAF has financed over $5.8
billion for more than 243,000 customers nationwide and
provides expertise and equipment finance solutions to a wide
variety of vendors and end users. LEAF has nationwide reach
with approximately 250 employees and a call center in Orange County, CA as well as a sales and
servicing facility in Moberly, MO.
"LEAF offers creative lease and loan programs to drive the sales
of its vendor partners," said Jeff
Tengel, Senior Executive Vice President of Commercial
Banking at People's United. "These programs are delivered through a
business process automation platform that combines efficiency with
an outstanding customer experience."
"We are confident in our ability to maintain and accelerate our
growth potential within People's United," said Crit DeMent, Chairman and CEO of LEAF Commercial
Capital. "Given the Bank's extensive experience in successfully
operating leasing and equipment finance platforms, they are
uniquely positioned to be a valuable partner for our clients and
employees." DeMent and Miles
Herman, President and Chief Operating Officer, will remain
with the business.
Under the terms of the agreement, People's United will acquire
approximately $730 million of net
investment in leases and loans and retain approximately
$250 million of
securitizations. Remaining LEAF borrowings are expected to be
repaid at close and the acquisition will be immediately accretive
to People's United earnings. The transaction is expected to
close during the third quarter of 2017.
J.P. Morgan Securities LLC served as financial advisor and
Simpson Thacher & Bartlett LLP served as legal counsel to
People's United Bank. Keefe, Bruyette & Woods, Inc.
served as financial advisor and Winston & Strawn LLP served as
legal counsel to LEAF Commercial Capital,
Inc.
About People's United Bank
People's United Bank, N.A.
is a subsidiary of People's United Financial, Inc. (NASDAQ: PBCT),
a diversified financial services company with $40 billion in assets. People's United Bank,
founded in 1842, is a premier, community-based, regional bank in
the Northeast offering commercial and retail banking, as well as
wealth management services through a network of nearly 400 retail
locations in Connecticut,
New York, Massachusetts, Vermont, New
Hampshire and Maine.
About LEAF Commercial Capital, Inc.
LEAF Commercial
Capital, Inc. ("LEAF"), headquartered in Philadelphia, PA, with offices in Moberly, MO and Orange, CA, is one of the leading equipment
leasing and finance companies in the U.S. Through its highly
automated origination platform, it facilitates the equipment needs
of small, mid-sized and enterprise businesses. LEAF serves these
needs both directly and through referral relationships with
manufacturers, distributors and dealers of essential-use equipment
and software in a variety of business sectors, including office
products, telephony, technology, medical and light industrial.
Learn more at www.LEAFnow.com.
People's United Bank. "What know-how can
do." ®
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SOURCE People's United Bank