The Atlanta-based bank will expand its presence in the direct online lending market with the deal.
SunTrust Bank (Atlanta, $177 billion in total assets) announced it has reached a deal to acquire online lender FirstAgain. Terms of the transaction were not disclosed.
San Diego-based FirstAgain specializes in providing direct unsecured loans to super-prime borrowers via the Internet. The company, which was founded in 2005, has developed proprietary technology which offers its clients a digital and paperless origination, underwriting and servicing experience.
Suntrust said the acquisition will enhance its presence in the direct online lending market. "FirstAgain's technological prowess and expertise provide SunTrust with an attractive nationwide online lending platform," said Brad Dinsmore, an executive in SunTrust's consumer banking and private wealth management divisions.
Pending customary regulatory approvals, the companies expect the transaction to close in the second quarter of 2012. FirstAgain will operate with its current management team as a unit of SunTrust's Consumer Banking line of business.