CertusBank, N.A., with offices in South and North Carolina, Georgia and northern Florida, announced Wednesday it has agreed to acquire Quadrant Financial Inc., a subsidiary of Savannah-based First Chatham Bank.
First Chatham bought a controlling interest in Quadrant Financial, a Louisville, Ky.-based lender specializing in Small Business Administration loans, in 2005.
By the end of this year, it had become the 22nd largest producer of small business loans in the country and the second largest in Georgia behind SunTrust Bank, said Brian Foster, First Chatham’s chief executive officer.
Foster said Quadrant has become one of the most recognizable names in small business lending.
“We had built this company, Quadrant, which we were majority owners of with slightly more than 50 percent,” he said. “Over the years, it had grown and had become a very profitable lending subsidiary, primarily focused on SBA loans.”
Quadrant had grown to the point where First Chatham couldn’t provide the resources for the firm to grow to its full capacity, Foster said, and it became clear it would become more valuable to a larger bank.
Selling Quadrant also would create capital for First Chatham and allow the bank to focus on its Coastal market, he said.
Certus was a good choice, Foster said, because they’re in a strong capital position and were looking to expand in the Southeast.
“It was a perfect match for the two of us,” he said.
The sale requires regulatory approval, but Foster said the banks hope to close the deal by Dec. 31.
CertusBank, based in Greenville, S.C., will become the No. 1 small business lender in South Carolina with the acquisition of Quadrant.
“I’m thrilled about this acquisition,” said Walter L. Davis, co-CEO of CertusBank. “lt positions us perfectly to expand our small to mid-size business platform in the Southeast, especially in our headquartered state of South Carolina.”
Davis said bank officials also are excited to have John Handmaker and George Vredeveld, the co-founders of Quadrant, join their organization.
“They are proven leaders in the industry and have developed a strong team of small business lending professionals,” Davis said.
CertusBank agreed to acquire 100 percent of Quadrant, which was founded in 2001, has offices in eight states and has originated more than $750 million in small business loans across the United States.
Handmaker and Vredeveld said they have been privileged to serve the financing needs of their customers and are excited and honored to be part of CertusBank.
CertusBank has two branches in the Savannah area, one on Hodgson Memorial Drive and the other in Rincon. CertusBank acquired them when the Georgia Department of Banking and Finance closed Atlantic Southern Bank in May 2011.
ABOUT CERTUSBANK, N.A.
CertusBank, N.A. is a subsidiary of CertusHoldings lnc. (formerly Etue Ridge Holdings Inc.) and has $57.8 billion in assets, 37 branch locations, three operations centers and offices in North and South Carolina, Georgia and northern Florida.
