Home BancShares Adds To Maritime Loan Portfolio In $238M Deal

Home BancShares has completed its purchase of Utah-based LendingClub Bank’s maritime loan portfolio. The terms of the transaction totaled $238 million in acquired yacht loans.

The loan portfolio will be housed within the Centennial Shore Premier Finance (SPF) division of Home BancShares, which will be responsible for managing the acquired loan portfolio and originating new loans.

SPF is a specialized marine lending division of Centennial Bank with a nationwide platform for dealer floor plan and retail marine lending. Upon completion of the acquisition, SPF will have total loans receivable of approximately $1.13 billion.

“The shipping business continued to be a strong segment for Centennial Bank,” said CEO and President of Home BancShares John Allison. “This opportunity allows us to acquire a quality portfolio that complements our marine finance division.”

Home BancShares bolstered its marine lending portfolio in February 2020 when it acquired LH-Finance, the marine lending division of People’s United Bank, based in Bridgeport, Connecticut. Around this time, Home BancShares acquired $405 million in maritime loans.

“I am particularly pleased with the acquisition of this consumer maritime portfolio,” said SPF President John Marshall. “Our due diligence has revealed that the credit metrics for each loan in this pool will further enhance Shore Premier Finance’s portfolio and should deliver very similar asset performance. Growth helps scale our business, increase our contribution to the bottom line, and smooth fluctuations in pandemic production. »

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