MidFirst Bank has struck a deal to purchase the Atlanta-based commercial lender Presidential Financial Corp., the bank said Wednesday.
The terms of the acquisition were not disclosed.
Presidential is an asset-based senior secured lender that provides loans for the manufacturing, distribution, professional services and health care industries.
The lender will continue to operate under the Presidential name, but will become a subsidiary of MidFirst once the deal is finalized.
“Our acquisition of Presidential aligns us with an experienced management team that has a 30-year track record of providing specialized financing solutions to their clients,” Jeff Records, chairman and chief executive officer for MidFirst, said in a statement.
“Our business lines are highly complementary and the combination will immediately create opportunities and value for MidFirst Bank.”
David Collins, a senior vice president for MidFirst, declined to comment on how much the Presidential acquisition would increase MidFirst's assets.
Both MidFirst and Presidential are privately held. MidFirst had about $10 billion in assets at the end of September 2012, according to the FDIC.
Presidential describes itself on its website as one of the largest, non bank-owned, asset-based lenders in the country. The company offers asset-based loans to businesses ranging from $1 million to $5 million.
The deal has been approved by the boards of directors of both companies, but is still subject to regulatory approvals, MidFirst said.
MidFirst expects to finalize the acquisition early this year.