CFBank Taps Orion First to Provide Servicing for Equipment Financing

Rhea-AI Summary

Orion First Financial has been chosen by CF Bankshares Inc. (NASDAQ: CFBK) and its subsidiary CFBank to provide primary management services for their equipment finance and leasing operations. This partnership will enable CFBank to support its recent expansion into commercial equipment financing, catering to middle-market and small-ticket transactions. Orion will manage portfolio services such as contract booking and payment processing, while CFBank focuses on credit underwriting and origination. In 2019, the U.S. saw $51.4 billion in small-ticket equipment financing, indicating a growing market.

Positive

• CFBank expands into commercial equipment finance and leasing.
• Orion provides comprehensive portfolio management services.
• Partnership allows CFBank to focus on origination and credit underwriting.
• Growing market for small-ticket equipment financing, with $51.4 billion originated in 2019.

Negative

• None.

SEATTLE, March 10, 2021 /PRNewswire/ -- Orion First Financial, LLC announced today that CF Bankshares Inc. (NASDAQ: CFBK) and its wholly-owned banking subsidiary, CFBank, N.A. ("CFBank"), has selected Orion First, a full-service commercial loan and lease portfolio servicer, as its exclusive provider of primary management services for the bank's equipment finance and leasing line of business.

The agreement between the companies supports CFBank's recent expansion into commercial equipment finance and leasing, offering financing to businesses secured by new and used equipment.

As part of the agreement, Orion will provide CFBank with full portfolio management services including the booking of newly originated contracts; payment processing and all cashier services; reporting covering accounting, portfolio data, delinquencies, and custom reporting; fully staffed, white-labeled customer service support, and delinquency/default management.

CFBank's focus in this arena will be middle-market and small-ticket equipment finance transactions, loans, and portfolio purchases. It will originate transactions from third parties and bank customers before eventually expanding into vendor programs. "Our decision to go with Orion was simple: they're the best at what they do," says John Catalano, CFBank's new president of equipment finance. "We want to stay focused on origination and credit underwriting. For that, we need a trusted partner for portfolio servicing and that is what we have with the Orion team."

"We are excited to support CFBank with their entry into the equipment finance space," said Quentin Cote, EVP of Orion First. "This is a fantastic team doing great work that aligns with our values. They are actively committed to helping small businesses succeed. As more banks enter the equipment finance and small ticket finance sectors, our industry as a whole benefits from their lending experience, their knowledge of commercial banking products, expanded customer bases, and ultimately, new ways to improve the experience of small business borrowers everywhere." 

Approximately $51.4 billion of new small-ticket (under $250,000) equipment loan and lease financing was originated in the United States in 2019, according to the Equipment Leasing & Finance Association in its 2020 Survey of Equipment Finance Activity, up from $47.5 billion in 2018. New business volume—which grew 10.5% in 2019—outpaced GDP growth (2.3% according to the U.S. Department of Commerce), with banks seeing the highest increase (12.8%) compared to independents (8.4%) and captives (6.9%).

About Orion First
Orion First, founded in 2001, is a full-service commercial loan and lease portfolio servicer which provides a suite of services and products to manage the complete life cycle of a borrower. Orion's servicing platform includes systems to support lease and loan accounting, credit application processing, scoring and decisioning products, and collection management.

About CFBank
CFBank is a boutique commercial bank that was founded in 1892 and headquartered in Columbus, Ohio. Over a century has passed and its focus remains the same: to help businesses and individuals thrive. CFBank specializes in commercial loans and leases, commercial and residential real estate lending, treasury management depository services, and personal banking. CFBank is proud of its Ohio roots serving client needs through its physical locations in several Ohio major metro-markets including Columbus, Cleveland, Cincinnati, Akron, and branch locations in Columbiana County. In addition to its expanding network of full-service brick-and-mortar locations, CFBank also has national lending and deposit account origination presence. CF Bankshares, Inc. is the holding company for CFBank, N.A. (NASDAQ: CFBK)

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SOURCE Orion First Financial

FAQ

What recent partnership did CF Bankshares (CFBK) announce?

CF Bankshares Inc. has partnered with Orion First Financial to provide primary management services for its equipment finance and leasing operations.

What services will Orion First provide to CFBank?

Orion First will manage full portfolio services including contract booking, payment processing, and delinquency management for CFBank's equipment finance line.

What market does CF Bankshares focus on with its new expansion?

CF Bankshares focuses on middle-market and small-ticket equipment finance transactions.

How much small-ticket equipment financing was originated in the U.S. in 2019?

Approximately $51.4 billion in small-ticket equipment financing was originated in the U.S. in 2019.

What is the significance of CFBank's partnership with Orion for small businesses?

The partnership aims to enhance support for small businesses by improving access to commercial equipment financing.