TCF Financial Corp., a regional bank holding company in Wayzata, Minn., says it will acquire auto lender Gateway One Lending & Finance of Anaheim, Calif. Terms were not disclosed.
TCF National Bank (formerly Twin Cities Federal) has offices in Minnesota, Arizona, Colorado, Illinois, Indiana, Michigan, South Dakota and Wisconsin.
Gateway said it makes auto loans in 30 states, through 3,100 U.S. dealers, including franchised new-car dealers and independent used-car dealers. As of Sept. 30, Gateway had originated $214 million in auto loans this year, mostly for used cars, and had a managed portfolio of $406 million.
"We are buying Gateway One to expand our national lending platform and to diversify our current portfolio," a TCF spokesman said. The transaction is expected to take effect by year end.
Separately, Fitch Ratings, of Chicago, said in a note to investors that it regarded TCF's inexperience in auto lending as a negative.
But TCF said it would retain Gateway's executive management, which includes several former executives of independent auto lender Onyx Acceptance Corp. Capital One Auto Finance bought Onyx in 2004.