CapitalSource Inc. in Chevy Chase, Md., announced Monday that it has acquired MainStreet Lender LLC, a Small Business Administration lender, for $100 million.
The $5.6 billion-asset CapitalSource Bank, the company's main subsidiary, is to acquire the $111 million portfolio of small-balance SBA and conventional loans.
MainStreet's chief executive, George Harrop, will join CapitalSource to lead the SBA lending team.
"This acquisition is consistent with our articulated strategy of building our franchise with asset origination platforms that focus on commercial lending, which we view of particular value as the banking industry will likely face a significant asset gap across the next several years," said John K. Delaney, CapitalSource's executive chairman.
CapitalSource Bank, based in Los Angeles, was started in 2008 when CapitalSource bought 22 branches and some assets from Fremont Investment and Loan, an industrial loan company owned by Fremont General Corp. in Brea, Calif.
CapitalSource applied to become a bank holding company in November 2008 as a part of an effort to convert its bank subsidiary to a commercial charter but gave up on the bid last year.
Meanwhile, Hebron Savings Bank in Hebron, Md., announced it has an agreement to buy substantially all of the deposits and assume certain loans of Bay National Bank.
The $450 million-asset savings bank is also buying Bay National's branch in Salisbury, Md., on the state's Eastern Shore.
Bay National, which has assets of $290 million, has one outlying branch, in Lutherville, Md., just outside Baltimore. The sale price was not disclosed.
Hebron operates 10 branches, including three in Salisbury.
