US regional banks diversify into equipment finance market

First Midwest Bank has announced the launch of First Midwest Equipment Finance, which marks a new name and a re-brand for National Machine Tool Financial Corporation, a leasing company acquired by the bank in 2014.

The bank, based in Chicago, said First Midwest Equipment Finance would be positioned to provide equipment leasing and financing alternatives to traditional bank financing.

“We are extremely pleased that the National Machine Tool team has joined First Midwest Bank, adding equipment leasing to our commercial product offerings. Over the past 30 years, this team has built a solid reputation and a strong business predominantly operating in the manufacturing and industrial equipment leasing and finance markets,” said Mark G. Sander, president of First Midwest Bank.

Sander continued: “We are providing the necessary momentum to expand this business by integrating our commercial leasing operations under the First Midwest name, which will enable us to leverage our sales platforms and enhance client relationships.”

“Joining First Midwest Bank has been a great opportunity for us, and the launch of First Midwest Equipment Finance will allow us to further build the Bank’s leasing operations,” said Chris J. Chiappetta, president of First Midwest Equipment Finance. “We will continue to utilize the well-known National Machine Tool brand in addition to the First Midwest Equipment Finance name.”

New York-based commercial bank Modern Bank has announced that Michael C. Nedder has joined the bank as managing director and head of asset finance. He will be responsible for growing the new business lines of equipment finance and asset based lending. Asset finance will be national in scope with the initial phase focusing on an institutional buy-side strategy. Large corporate and middle market borrowers will be the bank’s target markets.

“Mike is a key addition to our bank and the commercial markets team,” said Damian Kozlowski, president and CEO of Modern Bank. “His experience will help us build an asset finance business to complement the bank’s other lending activities.”

Nedder has over 15 years of secured specialty finance experience. In addition to his banking background, he spent the past seven years in new business development at Stabilis Capital and Silver Point Capital.

“Equipment finance and asset based lending will help diversify the bank’s portfolio and product offering and we are confident that Modern Bank will be successful in these areas under Mike’s leadership,” said Curt Lueker, head of commercial markets at Modern Bank.