Regional Financial CorporationRF’s subsidiary, Regions Bank, has completed the previously announced acquisition of Sabal Capital Partners, LLC. Last October, Regions agreed to acquire the diversified financial services company, leveraging the technology-driven origination and servicing platform for off-balance sheet lending in the low-cost commercial real estate market. balance.
Once the transaction closes, Sabal will be integrated into Regions’ Real Estate Capital Markets platform. Regions also took over Sabal’s flagship offices in Irvine and Pasadena, California, as well as New York City to expand the Real Estate Capital Markets platform’s production offices to 20.
Regions only acquired the lending and servicing segments of Sabal’s business. However, the investment management business and the investment funds managed by Stone Point Capital LLC remain with the seller.
Management noted, “By welcoming Sabal to the Regions family, we are further enhancing our multifamily and off-agency lending capabilities and accelerating our growth in low balance off-balance sheet commercial real estate lending. With Sabal’s strong reputation, cutting-edge technology platform and exceptional team, this acquisition is an opportunity for Regions to meet the additional needs of our clients while reaching new clients through the additional services provided by Sabal Capital. Partners.”
Sabal is one of the apex originators of low balance agency commercial real estate loans and has a strong presence in the origination of non-agency commercial mortgage-backed title loans. Sabal has created nearly $6 billion in funding across the United States since its inception and maintains its current service portfolio of $5 billion.
It helps its clients through its proprietary, cutting-edge SNAP platform, a tool developed to improve lending and communication processes with clients, and its investor base. Sabal relies on tools, such as real-time commercial real estate financing scenarios, transparent online loan applications, and technology that allows clients to analyze loan progress through to deal closing.
The acquisition reinforces Regions’ strategy of acquiring companies that allow it to improve its relationships with its current customers, while attracting new customers, attracted by the services, skills and technologies offered by companies such as Sabal. .
The acquisition of Sabal extends Regions’ commercial real estate solutions to the full range of agency offerings. This will likely incur assembly and service charges, further increase non-interest income and diversify overall income.
Regional shares have gained 40% over the past year, outpacing industry growth of 35.2%.
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Currently, the company carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic growth efforts by other companies
Several companies in the financial sector are undertaking consolidation efforts to counter the low interest rate environment as well as the increased costs of investing in technology.
Recently, Ally Financial Inc. ALLY has acquired the first digital credit card company Fair Square Financial. Last October, ALLY agreed to buy Fair Square for $750 million in an all-cash deal.
The transaction will advance Ally Financial’s evolution as a leading digital consumer bank, delivering innovative, frictionless products to its growing customer base. In addition to advancing the company’s digital offerings, the deal is expected to improve its ability to grow and deepen customer relationships, and provide access to the trillion-dollar credit card market.
National Valley Bank VLY completes previously announced merger agreement with Westchester Bank Holding Corporation. Last June, VLY reached an agreement to acquire Westchester in a bid to expand its presence.
The acquisition is expected to provide Valley National with a physical footprint and additional commercial lending expertise in the Westchester County market. Along with the Westchester branches, Valley National will now have 233 total branches, 131 in New Jersey, 45 in New York, 41 in Florida and 16 in Alabama.
Citizens Financial Group, Inc. CFG recently completed its previously announced merger with JMP Group LLC. CFG announced the all-cash deal in September in a bid to increase its capital market capabilities.
The takeover is expected to drive growth, diversify Citizens Financial’s capital market platform and provide greater scale in key verticals like healthcare, technology, finance and real estate.
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Regions Financial Corporation (RF): Free Stock Analysis Report
Valley National Bancorp (VLY): Free Stock Analysis Report
Ally Financial Inc. (ALLY): Free Stock Analysis Report
Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report
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