TCF Financial Corp. in Wayzata, Minn., is moving into the indirect automobile lending business.
The $18.8 billion-asset company said Thursday that it is acquiring Gateway One Lending & Finance LLC, an Anaheim, Calif., company that uses its relationships with more than 3,100 dealers to make car loans to consumers in 30 states. Gateway has originated $214 million auto loans so far this year and has a managed portfolio of $406 million.
In a news release, TCF Chairman and Chief Executive Officer William A. Cooper, said the deal would provide TCF "both a new incremental revenue source and opportunities for balance sheet growth at a time where these objectives are challenged by industry or economic headwinds."
TCF said it would retain Gateway's management team, including its CEO, Brian MacInnis. The sale is expected to close by the end of the year.
