BofI Buys Equipment Finance Business from PacWest

BofI Holding in San Diego has bought an equipment finance business from PacWest Bancorp in Beverly Hills, Calif.

The $6.7 billion-asset BofI said in a press release Monday that it acquired "certain assets and assumed certain operations" of Pacific Western Equipment Finance in Salt Lake City, including about $140 million of equipment leases in 36 states and Canada that cover more than 50 industries.

BofI also added 25 employees, including the business' senior management team. The business, which will become a part of BofI's commercial-and-industrial lending group, will continue to conduct equipment lending operations at its loan production and servicing office in Utah
The transaction is expected to be accretive to earnings per share in the first year, including the lease purchase price premium of about 2.5% and certain one-time expenses.

PacWest bought the equipment finance business from Meridian Bank in 2012 for $35 million. The unit provides direct and indirect financing on essential-use equipment ranging from $250,000 to $5 million.

"The addition of EQF immediately makes us an established lender in the equipment leasing space," Greg Garrabrants, BofI's president and chief executive, said in the release. "It adds a new vertical to our C&I lending group, further diversifying our commercial lending capabilities."