More than two years ago, Siena Lending Group launched ABL Alliance, a program designed to help community banks expand their ABL offerings. OceanFirst Bank, a community bank based in New Jersey, has seen the benefits of participating in ABL Alliance.

“At OceanFirst Bank, we wanted to expand our product line by getting into asset-based lending. ABL Alliance has helped us achieve this without spending the time or resources in building an internal back office or the technology,” said Michael DellaBarca, senior vice president of OceanFirst Bank.

ABL Alliance allowed OceanFirst Bank to expand product line and source ABL deals directly, participate in loans generated by Siena at attractive yields without a dramatic increase in risk profile, obtain cash management business at expand fee income in loans participated with Siena and remain in credits after difficult operating cycles by restructuring credits and relying on Siena’s enhanced monitoring capabilities.

ABL Alliance, makes transacting asset-based loans seamless for a community or regional bank by outsourcing the infrastructure requirements to responsibly participate in ABL. Siena Lending Group provides senior secured asset-based loans from $1 million to $30 million to lower middle market businesses across the U.S.

With $4.2 billion in assets, $3.2 billion in loans, $3.2 billion in deposits and 50 branches located throughout central and southern New Jersey, OceanFirst Bank has been a leading institution in the retail and residential mortgages. However, changes in the local and national marketplace coupled with monetary policy enacted by the Federal Reserve after the great recession has prompted banks to seek alternative growth strategies and revenue streams. OceanFirst Bank is no different.

As a result, OceanFirst Bank’s growth strategy was to expand its commercial lending capabilities and product line. The ABL product allows OceanFirst Bank to round out its product line and to be more competitive in a difficult banking environment. The ABL product attracts generally higher all in yields and account profitability.

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Partnering for Growth: Siena Lending Brings ABL to Community Banks