Crestmark Bancorp of Troy, Mich., has purchased the working capital loan portfolio from First Citizens Bank and has entered into partnership with the Raleigh, N.C., company.
The $376 million-asset Crestmark said Wednesday that through the partnership, it will provide asset-based lending, recourse and nonrecourse factoring and other working capital services to the customers of First Citizens.
The $20.8 billion-asset First Citizens, the banking unit of First Citizens Bancshares (FCNCA), will continue to provide primary banking and traditional lending services to its customers.
After considering its goals, "First Citizens recognized the need for a partner that could offer a broader range of working capital options to a larger group of client companies," Tom Harris, senior vice president of First Citizens Bank, said in a news release. Crestmark provides asset-based lending, accounts receivable financing, lines of credit and factoring to small and medium-sized businesses. It has offices in a dozen states, including North Carolina, New York, California and Texas.
The financial terms of the agreement were not disclosed.