The deal also made the bank the national preferred loan provider to the insurer’s agents.
The Allstate Corp and Wintrust Bank have come to an agreement in which $570 million of loans have been sold to the bank, and that financial institution has become the preferred national provider of loans to the insurer’s agents.
In total, the bank will be purchasing 1,800 loans to agents across the country.
The bank, which is based in Rosemont, Illinois, has branches in Lansing, Dyer, and across the southern suburbs in the state. It has agreed to purchase the 1,800 loans to Allstate Corp agents across the country, totalling about $570 million. The loans will be purchased through Lake Forest Bank & Trust Company, a wholly owned subsidiary of Wintrust Bank. Agents borrowed the money to purchase, expand, and meet the capital needs of their agencies. The loan purchase is expected to close before the end of November.
“Wintrust is excited to work with Allstate to acquire the agency loans and looks forward to serving Allstate agents going forward,” said Edward Wehmer, founder and CEO at Wintrust. “This portfolio and the related ongoing opportunity is a great fit with our existing insurance finance business. It’s also an example of two great Chicago companies coming together to serve the needs of their stakeholders.”
Wintrust will also put together an Allstate Corp agency lending specialist team.
The new team is being assembled to meet the needs of its insurance agency finance business, which is expected to rapidly grow as the bank becomes the preferred lender to the insurer’s agents. The financial institution will offer the agents term loans for their businesses, as well as SBA loans, revolving credit financing, financing related to real estate, as well as a range of other banking services. Furthermore, it will provide agents with mortgages, digital banking and wealth management services.
“We will partner closely with Wintrust to ensure a superb experience for those interested in new lending products and services,” said executive vice president and general manager of Allstate Corp agency distribution Terrance Williams upon the announcement of the sale of the loans to Wintrust.