First Midwest launches alarm lending practice
ITASCA, Ill.—Joining a growing number of lenders and investors with a specific interest in the security industry, First Midwest, which has $7.8 billion in assets, announced March 23 that its security alarm lending group is up and running and ready for business.Jessica Richardson, VP commercial banking, developed the alarm lending group for First Midwest. “We’ll be competing with [industry lenders such as] Bank of America, CapitalSource and PrivateBank,” she said. “We’re interested in doing deals and we have the capital to do so.”
First Midwest, based here, has 100 branches and $6.5 billion in deposits. First Midwest is looking for alarm companies with $400,000 in RMR. Typical loan amounts will be between $10 million and $30 million.
“We have a strong appetite [for lending] and will offer competitive multiples and pricing and flexible terms,” she said.
First Midwest will offer loans “to support M&A, organic growth, for working capital, and we’re not afraid to look at a dealer program,” Richardson said.
Richardson is an industry vet, having worked at LaSalle Bank and most recently as a director at Security Performance Partners, working with alarm companies to source capital.
She said that First Midwest “wants to grow its portfolio and knows that a great way to do that is to lend to alarm companies. Our upper management has knowledge of the industry’s specific accounting practices and is comfortable extending credit to solid alarm companies with strong operating performance.”
Mark Sander, president and COO of First Midwest, was previously with LaSalle Bank/Bank of America, she said.