TCF Financial Corporation announced yesterday that its wholly-owned subsidiary, TCF National Bank, plans to acquire Gateway One Lending & Finance LLC.
Gateway One, a privately held lending company, has relationships with more than 3,100 dealers in over 30 states. As of late September, the company had originated $214 million in auto loans year-to-date and had a managed portfolio of $406 million. The Anaheim, Calif.-based lender primarily offers loans for used-cars to high-credit-worthy borrowers.
The Wayzata, Minn.-based TCF Financial contains $18.8 billion in assets and hopes that the acquisition will help diversify its lending business and provide growth opportunities within the auto lending market, said William Cooper, TCF’s chairman and chief executive officer, in a statement.
Financial terms of the transaction, which is expected to close by the end of this year, were not disclosed though TCF said it will be retaining Gateway One’s executive management team.
J.P. Morgan Securities LLC is acting as exclusive financial advisor to TCF Financial.
TCF Bank operates bank branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona and South Dakota and is focused on retail and commercial banking products as well as commercial equipment loans and leases and inventory finance loans throughout the United States and Canada.
