BofI buys into equipment finance

Bank of Internet (BofI), a brand owned and operated by BofI Federal Bank, a nationwide bank that provides financing small-to-medium size businesses in target sectors, and selected specialty finance receivables, has announced it has acquired certain assets and assumed certain operations of Pacific Western Equipment Finance (EQF).

Under the deal, which closed on 31 March, the bank has acquired approximately $140 million of equipment leases diversified across 36 states and Canada and over 50 industries. In addition, it will retain around 25 existing employees, including Pacific Western Equipment Finance’s entire senior management team, which will become a part of the bank’s C&I lending group and continue to conduct equipment lending operations in Utah.

The transaction is expected to be accretive to earnings per share within the first year post-closing, including the lease purchase price premium of approximately 2.5% and certain one-time expenses.

“We are very excited to welcome the Salt Lake City-based EQF Group to the Bank,” said Greg Garrabrants, president and CEO of BofI Federal Bank. “The addition of EQF immediately makes us an established lender in the equipment leasing space. EQF’s relationships and strong credit history provide a platform from which we can scale the business in an efficient and profitable way. It adds a new vertical to our C&I lending group, further diversifying our commercial lending capabilities.”

With roots dating back to the 1970s, EQF is an established leader in financing for business equipment to middle market companies. EQF provides direct and indirect financing on essential-use equipment ranging from $250,000 to $5 million. The current EQF management team operated independently as Marquette Equipment Finance from 2006 to 2012 before being acquired by Pacific Western Bank in January 2012.