First Internet Bancorp (INBK) in Indianapolis is adding asset-based lending to its commercial offerings.
Its new unit, called First Internet Bank Business Capital, will offer working capital of between $2 million and $5 million to small and midsize businesses, the $656 million-asset bank announced Wednesday. The unit will offer revolving lines of credit backed by accounts receivable and inventory and term loans backed by real estate and equipment, it said.
First Internet has hired Gregg Corey and Jennifer Eller to lead the division, working from a loan-production office in Portland, Ore. Corey had worked in U.S. Bancorp's (USB) asset-backed lending unit, First Internet said. Eller joined First Internet from Textron Financial Corp., a commercial financing firm.
"This new line of business allows us to serve a greater base of businesses and accelerates our growth by generating additional high quality assets," said David Becker, First Internet Bank's chief executive, in the news release.
First Internet has been pushing into traditional commercial lending in an effort to broaden the online bank's offerings beyond mortgages and retail banking. It started up its commercial-lending business three years ago, and added a commercial and industrial division last year.
Last month, First Internet announced that it would raise up to $29 million in a stock offering.