Acquisition to support small-balance commercial real estate
lending through a technology-enabled platform.
Regions Bank on Monday announced it has entered into a
definitive agreement to acquire Sabal Capital Partners, LLC, a
diversified financial services firm that leverages an innovative,
technology-driven origination and servicing platform to facilitate
lending in the small-balance commercial real estate market for
clients nationwide.
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Regions Bank announced it has entered
into a definitive agreement to acquire Sabal Capital Partners, LLC.
(Graphic: Business Wire)
Sabal is one of the top originators of Fannie Mae and Freddie
Mac small-balance commercial real estate loans and has a growing
presence in non-agency commercial mortgage-backed securities loan
origination. Regions plans to incorporate Sabal into its growing
Real Estate Capital Markets division.
Based in Irvine, California, Sabal Capital Partners is a
vertically integrated platform that has originated nearly $6
billion in financing across the U.S. since inception and maintains
a current servicing portfolio of nearly $5 billion. The company
serves clients through its state-of-the-art SNAP™ platform, a
proprietary tool developed by Sabal to optimize the lending and
communications processes with clients and Sabal’s investor
base.
The acquisition advances Regions Bank’s strategy of acquiring
businesses that enable Regions to deepen relationships with current
clients, while attracting new clients that are drawn to the
services, capabilities, and technologies provided by companies such
as Sabal Capital Partners.
“With the addition of Sabal Capital Partners, Regions will
become even better positioned to further build on our client base
and deliver an expanded range of agency and non-agency options for
real estate lending,” said Joel Stephens, head of Capital Markets
for Regions Bank. “Sabal’s industry-leading technology platform and
its leadership in the small-balance commercial real estate arena
make the company a great match for Regions. Our current affordable
and large-balance Fannie Mae and Freddie Mac products, combined
with Sabal’s small-balance agency capabilities, will allow Regions
to offer real estate solutions across the full spectrum of agency
offerings. We look forward to working together to provide superior
service to more real estate clients across the country.”
With its SNAP platform, Sabal Capital Partners has established a
competitive edge in delivering agency multifamily and commercial
real estate loan services. Sabal leverages tools such as real-time
commercial property financing scenarios, seamless online loan
applications, and technology enabling clients to track loan
progress through deal closure. Sabal’s agency finance solutions
include Fannie Mae® Small Loans, Freddie Mac Optigo® Small Balance
Loans, and Sabal’s newest offering, Freddie Mac Optigo®
Conventional Loans, a product Regions also recently added to its
suite of services.
“For years, our work has been defined by a constant focus on
innovation, and Sabal Capital Partners joining the forward-thinking
team at Regions Bank is a natural fit as Sabal offers tailored
lending solutions and reaches more clients together with Regions,”
said Pat Jackson, chief executive officer of Sabal Capital
Partners. “Regions Bank has a demonstrated commitment to delivering
competitive options for clients in the small- and middle-market
commercial real estate space while maintaining a prudent approach
to risk management. By joining Regions, Sabal can make an even
greater impact through combining technology-powered services with
years of experience and strategic decision making to deliver
unparalleled services for new and existing clients.”
Regions will maintain Sabal’s flagship offices in Irvine and
Pasadena, California, as well as New York City. When combined with
Regions Real Estate Capital Markets’ existing production offices,
the combined platform will have 20 production offices
nationwide.
Regions’ agreement to acquire Sabal Capital Partners, LLC is
specific to the lending and servicing segments of Sabal’s business
and does not include Sabal’s investment management business, which
will remain with the sellers, including Pat Jackson, and investment
funds managed by Stone Point Capital LLC. Jackson and Mike
Wilhelms, Sabal’s chief financial officer, will remain with the
investment management business while other members of Sabal’s
leadership team will join Regions.
Regions’ acquisition of Sabal Capital Partners, LLC is expected
to close in the fourth quarter of 2021, subject to obtaining
necessary consents from certain governmental agencies and
government-sponsored enterprises and satisfaction of customary
closing conditions. Terms of Regions’ agreement to acquire Sabal
Capital Partners were not disclosed.
Regions has acquired additional financial services providers in
recent years, including the 2020 acquisition of equipment finance
lender Ascentium Capital and the 2019 acquisition of institutional
investment firm Highland Associates. Earlier this year, Regions
announced a definitive agreement to acquire home improvement
point-of-sale lender EnerBank USA. The EnerBank acquisition was
completed Friday, Oct. 1.
Beekman Advisors represented Regions in connection with the
Sabal Capital Partners transaction, and Davis Polk & Wardwell
LLP served as Regions’ legal counsel. Wells Fargo Securities, LLC
served as financial advisor to Sabal Capital Partners, and Kramer
Levin Naftalis & Frankel LLP served as Sabal’s legal
counsel.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $156 billion in
assets, is a member of the S&P 500 Index and is one of the
nation’s largest full-service providers of consumer and commercial
banking, wealth management, and mortgage products and services.
Regions serves customers across the South, Midwest and Texas, and
through its subsidiary, Regions Bank, operates more than 1,300
banking offices and approximately 2,000 ATMs. Regions Bank is an
Equal Housing Lender and Member FDIC. Additional information about
Regions and its full line of products and services can be found at
www.regions.com.
About Sabal Capital Partners, LLC
Headquartered in Irvine, California, Sabal Capital Partners, LLC
and its commercial real estate lending and servicing subsidiaries
and affiliates have originated nearly $6 billion in financing
nationally through the company’s highly specialized wholesale
lending platform. Sabal strives to keep clients and investors ahead
of the curve, representing a corporate philosophy based upon the
core practices of innovation, partnership, commitment to excellence
and entrepreneurship. Sabal’s dedication to advancing the financial
services industry has led to the development of SNAP™, an
innovative platform designed to optimize the lending and investment
processes and enable a highly efficient interaction between Sabal
and its client and investor base. Sabal is a nationally rated
Commercial Primary Servicer and Commercial Special Servicer by
Morningstar with a CS2 ranking, an S&P Global rated Commercial
Mortgage Loan Special Servicer with an average ranking, as well as
a Fitch rated CMBS Primary Servicer with a CPS2- ranking and CMBS
Special Servicer with a CSS3+ ranking. For more information about
Sabal, visit www.sabal.com.
Forward-Looking Statements
This release may include forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995, which
reflect Regions Financial’s current views with respect to future
events and financial performance. The words “future,”
“anticipates,” “assumes,” “intends,” “plans,” “seeks,” “believes,”
“predicts,” “potential,” “objective,” “estimates,” “expects,”
“targets,” “projects,” “outlook,” “forecast,” “would,” “will,”
“may,” “might,” “could,” “should,” “can,” and similar expressions
often signify forward-looking statements. Forward-looking
statements are not based on historical information, but rather are
related to future operations, strategies, financial results, or
other developments. Forward-looking statements are based on
management’s expectations as well as certain assumptions and
estimates made by, and information available to, management at the
time the statements are made. Those statements are based on general
assumptions and are subject to various risks, uncertainties, and
other factors that may cause actual results to differ materially
from the views, beliefs, and projections expressed in such
statements. If underlying assumptions prove to be inaccurate or
unknown risks or uncertainties arise, actual results could vary
materially from these projections or expectations. Factors that
could cause Regions Financial’s actual results to differ from those
described in the forward-looking statements herein include: delays
in closing the Sabal transaction; expected synergies, cost savings,
and other financial or other benefits of the Sabal transaction
might not be realized within the expected timeframes or might be
less than projected; difficulties in integrating Sabal’s business;
the continued or potential effects of the COVID-19 pandemic and
related variants and mutations on Regions Financial’s business,
financial condition, and results of operations; and risks
identified in Regions Financial’s Annual Report on Form 10-K for
the year ended December 31, 2020, and our subsequent filings with
the Securities and Exchange Commission. However, these risks and
uncertainties are not exhaustive. Other sections of such filings
describe additional factors that could impact Regions Financial’s
business, financial performance, and pending or consummated
acquisition transactions, including the Sabal transaction. You
should not place undue reliance on any forward-looking statements,
which speak only as of the date made. We assume no obligation to
update or revise any forward-looking statements that are made from
time to time.
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version on businesswire.com: https://www.businesswire.com/news/home/20211004005264/en/
Media Contact: Jeremy D. King Regions Bank 205-264-4551
Regions News Online: regions.doingmoretoday.com Regions News on
Twitter: @RegionsNews Investor Relations Contact: Dana Nolan
Regions Bank 205-264-7040
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