First Internet Bancorp in Fishers, Ind., has agreed to buy the small business lending division of First Colorado National Bank in Paonia.
The $3.7 billion-asset First Internet said in a press release Monday that it will gain $39 million in loans that largely include Small Business Administration 7(a) loans. First Internet will also buy a $112 million servicing portfolio.
First Internet will also gain an SBA team that includes loan production, credit, portfolio management and servicing personnel, along with offices in Chicago and Indianapolis.
First Internet did not disclose the price it will pay. The deal is expected to close in the third quarter.
The acquisition “will significantly accelerate our efforts to expand access to affordable loans and serve our nation’s entrepreneurs,” David Becker, First Internet’s chairman, president and CEO, said in the release.
“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,” Becker added.
Hovde Group and Faegre Baker Daniels advised First Internet. The Capital Corporation advised First Colorado.
