Wintrust Financial Corp. and its wholly-owned subsidiary, Lake Forest Bank & Trust, have agreed to purchase an approximately $570 million loan portfolio from The Allstate Corp. and become the preferred national lender to Allstate agents.
The portfolio contains approximately 1,800 loans to Allstate agents nationally. Agents then use those loans to establish and grow their businesses and meet other working capital needs.
By becoming a national preferred Allstate loan provider, “Allstate agents will have expanded lending options and services through Wintrust and be supported with its award-winning lending services,” according to Wintrust. Wintrust will offer Small Business Administration, real estate-related financing, wealth management and mortgage services to Allstate agents. Allstate agents will have access to Wintrust’s digital banking services. A group of Allstate agency lending specialists will join Wintrust, augmenting and expanding Wintrust’s existing insurance agency finance business.
“Wintrust is excited to work with Allstate to acquire the agency loans and looks forward to serving Allstate agents going forward,” said Wintrust Founder and CEO Edward J. Wehmer. “This portfolio and the related ongoing opportunity is a great fit with our existing insurance finance business. It’s also an example of two great Chicago companies coming together to serve the needs of their stakeholders.”
Terrance Williams, executive VP and general manager of Allstate’s agency distribution, said his firm “will partner closely with Wintrust to ensure a superb experience for those interested in new lending products and services.”
Wintrust operates 15 community bank subsidiaries and has more than 170 bank locations in the greater Chicago and southern Wisconsin markets.
The terms of the transaction were not disclosed.