Ameris Bancorp buys fintech Balboa Capital to bolster national lending

In a move that accelerates its national lending ambitions, Ameris Bancorp in Atlanta has acquired the online business lender Balboa Capital.

The $22.5 billion-asset bank said in a press release Monday that the deal for Costa Mesa, California-based Balboa will beef up its small-business and commercial-and-industrial lending, while increasing its presence in the fast-growing point-of-sale financing market.

Ameris already has a number of national lending platforms, including premium finance, mortgage banking and warehouse lending businesses.

Balboa uses proprietary financial technology to make credit decisions and fund loans in one day. It is expected to originate more than $415 million of loans this year, Ameris said.

“We look forward to providing Balboa Capital's lending technology and bringing a new digital lending option to more of our business customers,” Ameris CEO H. Palmer Proctor Jr. said in the release.

Ameris did not disclose a deal price or other financial metrics but said it projected significant earnings accretion from the all-cash transaction. It expects to earn back tangible book value dilution within four years.

Proctor said Balboa CEO Patrick Byrne and President Phil Silva have joined Ameris in leadership roles. “We are excited to have Pat, Phil and their team join our organization as we expand our online lending capabilities," Proctor said.