The digital-only bank First Internet Bancorp on Thursday announced a partnership with Lendeavor, a digital lender to health care practices, under which the bank is taking an equity stake in the firm.
The partnership comprises a loan-purchase agreement and an equity investment of undisclosed size; the loan-purchase agreement includes a five-year commitment from First Internet Bank of up to $120 million annually in lending capital to fund loans issued by Lendeavor. Lendeavor said the capital will be used to expand and meet increasing demand.
Founded in 2014, the San Francisco-based Lendeavor operates an online platform that allows medical practitioners to obtain practice and commercial real estate loans of up to $5 million.
As part of the deal , David Becker, president and CEO of the $2.3 billion-asset First Internet Bank, will join Lendeavor’s board of directors.
"Healthcare finance is a rapidly growing industry, and this particular segment is one where we have a good history from a credit perspective,” Becker said in a press release. “We see this relationship as more than just an opportunity to continue to diversify our asset generation channels. We chose to partner with Lendeavor because they share our commitment to solving banking and financing challenges through extraordinary customer experience and innovative technology.”