Truist Expands Point of Sale Platform by Acquiring Leading Home Improvement Lender Service Finance Company, LLC

CHARLOTTE, NC, August 10, 2021 / PRNewswire / – Truist Financial Corporation (NYSE: TFC) announced today that its wholly owned banking subsidiary Truist Bank has entered into a definitive agreement to acquire Service Finance Company, LLC (Service Finance), a leading national provider of point-of- Sales (POS) financing solutions for the home improvement industry, for $ 2 billion. The Service Finance acquisition expands Truist’s POS lending business, which currently includes Sheffield Financial, a leading POS lender in the power equipment, power sports, trailers and other consumer goods segments. Service Finance and Sheffield will serve more than 250 manufacturers, associations and other sponsors of approximately 29,000 contractors and retailers, making Truist a leading national provider of POS credit solutions.

Based in Boca Raton, Florida, Service Finance leverages proprietary technology to provide innovative payment solutions to more than 14,000 home improvement retailers and contractors, helping them provide top-tier and super-prime borrowers with finance for a wide range of home improvement products and projects.

“The Service Finance acquisition expands the scope and capabilities of our wholesale payments business and enables Truist to bring innovative financing solutions to Service Finance’s nationwide dealer network and serve homeowners across the country,” said Mike Maguire, Head of National Consumer Finance and Payments at Truist. “This acquisition significantly strengthens Truist’s leadership position in the fast growing POS industry and we look forward to partnering with Mark Berch and the entire Service Finance team. “

“Service Finance’s customer-centric model, coupled with Truist’s financial strength and commitment to POS lending, positions us perfectly to continue delivering distinctive, secure and successful customer experiences,” said Jeff McKay, Truist POS Credit Manager. “Like Sheffield, Service Finance works with leading brand names in its industry and has built a reputation for unparalleled customer service and innovative solutions.”

“As a former building contractor, I know how important it is to give building contractors and their customers access to convenient and attractive financing, so that our end customers can spend more time enjoying the moments that matter where they are they matter most. their houses “said Mark Berch, President and Founder of Service Finance. “This is a dynamic market with tremendous potential and joining Truist will only improve our prospects for growth.”

More than 80% of Service Finance loan applications are completed through the mobile application, providing homeowners with an easy, fast and paperless experience. Originations are expected to exceed $ 2.5 billion in 2021 and has grown about 30% annually for the past three years, making Service Finance one of the top three home improvement POS finance companies. Truist has a close historical relationship with Service Finance and extensive home improvement industry experience including purchasing more than $ 2 billion of Service Finance loans since 2018.

The acquisition is not only very strategic, but also financially attractive:

  • Strong profitability profile with more than 3% cash return on assets (ROA) (run rate) with low credit risk (average FICO above 760)
  • Allows Truist to leverage its strong capital and liquidity position (approx. 50 basis points reduction in Truist’s core tier 1 capital ratio expected)
    • Service Finance currently has relationships with finance partners who purchase its loans; however, the vast majority of the loans owned by Truist are held on Truist’s balance sheet
  • Strong return on invested capital: Mid-Teens IRR
  • Earnings per share (EPS) growth:
    • Assuming that the acquisition replaces planned share buybacks (capital neutral), approx. 1% cash EPS dilution in the second year
    • Assuming that excess capital is used for the acquisition, approx. 2% cash EPS increase will be in the second year
  • Long-term, positive to Truist’s already strong profitability indicators: ROA, return on material equity, efficiency rate and EPS growth

Berch and the Service Finance team will join and continue to join Truist’s National Consumer Finance and Payments Group’s POS credit division Boca Raton, Florida. Service Finance is a wholly owned subsidiary of the Canadian ECN Capital Corp. Truist aims to close the acquisition by the end of 2021, subject to customary licensing and regulatory approvals and compliance with customary closing conditions.

Davis Polk & Wardwell LLP acted as legal advisor and Truist Securities acted as financial advisor to Truist. Cravath, Swain & Moore LLP served as legal advisor to ECN Capital Corp.

About Truist
Truist Financial Corporation is a purpose-driven financial services company dedicated to inspiring and building a better life and community. Established through the historic merger of BB&T and SunTrust, Truist has leading market shares in many of the country’s high-growth markets. The company offers a wide range of services including retail, small business and commercial banking; Asset management; Capital markets; Commercial real estate; Corporate and institutional banking; Insurance; Mortgage; Payments; specialized lending; and asset management. Headquarters in Charlotte, North Carolina, Truist is one of the top 10 US commercial banks with total assets of $ 522 billion away June 30, 2021. Truist Bank, member of FDIC. Learn more at

About Sheffield
Winston-Salem, NC– Headquartered in Sheffield Financial is a division of Truist Bank, a member of FDIC, which is a subsidiary of Truist Corporation (NYSE: TFC). Sheffield, which has more than funded $ 30 billion in the lending business since it was founded in 1992 currently looks after around 15,000 outdoor power equipment, powersport and trailer dealers across Germany. The company offers retail financing options for outdoor power equipment, trailers, and powersport equipment such as snowmobiles, ATVs, side-by-side vehicles, motorcycles, and watercraft in all 50 states. For more information on Sheffield Financial, please visit

About Service Finance Company
Service Finance Company, LLC (“SFC”) is a subsidiary of ECN Capital Corp. (TSX: ECN), a publicly traded seller and finance company. SFC offers financing solutions with promotional and standard installment terms for contractors participating in the SFC financing program. SFC is an FHA Title I lender and is authorized to do business as a distribution finance company and third party provider in all fifty states and the United States District of Columbia.

About ECN Capital Corp.
With managed and advised assets of $ 33 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North America-based banks, credit unions, life insurance companies, pension funds and mutual funds (collectively, our “Partners”). ECN Capital creates, manages and advises loan assets on behalf of its partners, in particular unsecured loan portfolios, secured loan portfolios and credit card portfolios. Our partners look for high quality assets that match their deposits or other liabilities. These services are offered by three operational business units: Service Finance, Triad Financial Services and The Kessler Group.

To learn more about ECN Capital Corp. and Service Finance, read the presentation on Investor Day 2021 from February 4, 2021.

SOURCE Truist Financial Corporation

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