Regions Bank announced it has entered into a definitive agreement to acquire home improvement lender EnerBank USA, one of America’s largest specialized home improvement lenders supporting homeowners and contractors through innovative products and digital financing solutions.
Based in Salt Lake City, UT, EnerBank has a nationwide reach, serving over 1 million homeowners since inception and currently more than 10,000 contractors through mobile, online and phone-based point-of-sale lending options. With approximately $2.8 billion in loan balances as of March 31, EnerBank’s platform complements Regions’ recent investments in mortgage and home equity lending services.
The acquisition also continues Regions’ strategy of acquiring businesses that deliver important additional products for Regions’ customers. Other examples include Regions’ 2020 acquisition of equipment finance lender Ascentium Capital and the 2019 acquisition of institutional investment firm Highland Associates. Now, with the addition of home improvement lender EnerBank, Regions Bank expands its suite of lending services to homeowners by adding point-of-sale home improvement financing capabilities.
“We are thrilled the EnerBank team will be joining Regions as we accelerate our strategy to serve as the premier lender to homeowners by offering more innovative financial solutions that prioritize ease of use and deliver a positive customer experience,” said Scott Peters, Senior Executive Vice President and head of the Consumer Banking Group for Regions Bank. “We have thoughtfully evaluated the home improvement point-of-sale lending space for a number of years, and we believe this is the right partner at the right time to deliver on our vision. EnerBank’s platform and skilled financial professionals, combined with the reach and experience of Regions’ Consumer Banking teams, will help us deepen relationships with clients while reaching new customers with convenient home improvement lending options.”
Through two decades in the home improvement lending space, EnerBank’s leadership and approximately 450 associates are focused on meeting the needs of today’s clients, while anticipating the needs of tomorrow. The EnerBank team has a demonstrated commitment to providing a customer experience that leverages both technology and financial insights to help contractors and homeowners complete projects through efficient and cost-effective financial solutions.
“EnerBank USA serves homeowners and home improvement contractors in all 50 states, including Regions Bank’s markets across the Southeast, Texas and the Midwest. By joining the team at Regions, we have a tremendous opportunity to connect more clients with custom-tailored home improvement lending options,” said Charlie Knadler, President and CEO of EnerBank USA. “For nearly 20 years, EnerBank’s point-of-sale loan programs have helped contractors grow their businesses by delivering attractive payment options for their customers while allowing homeowners to maintain and improve their most important investment. This combination with Regions brings together the strengths of two great companies that are putting customers first.”
Knadler and EnerBank’s team will join Regions as part of its Consumer Banking Group reporting to Peters. EnerBank will maintain its headquarters presence in Salt Lake City, with the team scheduled to occupy portions of 650 Main, a modern Class A office and retail complex under development downtown.
EnerBank is currently a wholly owned subsidiary of CMS Energy Corporation. Regions’ acquisition of EnerBank from CMS is expected to close in the fourth quarter of 2021, subject to regulatory approvals and satisfaction of customary closing conditions.
Stephens Inc. served as financial advisor to Regions in connection with the transaction, and Sullivan & Cromwell LLP served as Regions’ legal counsel. Goldman Sachs & Co. LLC served as financial advisor to CMS Energy, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to CMS Energy.