Fifth Third Bank Strengthens Relationship with Bellwether Enterprise

Rhea-AI Summary

Fifth Third Bank announces its second equity investment in Bellwether Enterprise Real Estate Capital, enhancing collaboration in the commercial real estate sector. Lars Anderson has been appointed to Bellwether’s Board of Directors, indicating a deepening partnership. This investment follows an earlier agreement aimed at providing a comprehensive set of financial solutions. The partnership allows Fifth Third clients access to extensive government lending programs for multifamily housing, aligning with the current need for capital in challenging economic conditions. Financial terms remain undisclosed.

Positive

• Fifth Third's follow-on investment in Bellwether demonstrates confidence in their partnership.
• Increased access to capital for Fifth Third's clients through Bellwether's government lending programs.
• Bellwether will leverage Fifth Third's lending products, enhancing service offerings.

Negative

• None.

CINCINNATI & CLEVELAND--(BUSINESS WIRE)--Fifth Third Bank, National Association, announced today its second equity investment in Bellwether Enterprise Real Estate Capital, LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc. (ECI). In addition, Lars Anderson, executive vice president and vice chairman of Commercial Banking Strategic Growth Initiatives for Fifth Third, has been appointed to Bellwether Enterprise’s Board of Directors.

“Fifth Third’s follow-on investment in Bellwether Enterprise demonstrates the Bank’s confidence in our ability to collaborate and deliver value together for commercial real estate businesses on a national scale,” said Anderson. “We are pleased to strengthen our relationship with Bellwether and support the company’s mission to provide our communities with a stable place to call home. I am also personally excited about the opportunity to help guide the company as a member of the organization’s Board of Directors.”

Fifth Third and Bellwether Enterprise announced the strategic relationship and equity investment from Fifth Third Acquisition Holdings, LLC., a wholly-owned subsidiary of Fifth Third, in April. The relationship is designed to offer a broad set of solutions for the commercial real estate industry.

Given Bellwether Enterprise’s wide capabilities with government lending programs, including Fannie Mae DUS™, Freddie Mac, FHA, USDA, and others, the relationship provides long-term agency financing through Bellwether Enterprise for Fifth Third’s clients. Additionally, Bellwether Enterprise can leverage Fifth Third Bank’s short-term and construction lending products, as well as treasury management, capital markets and investment solutions.

“During challenging economic times, access to capital and government programs for multifamily housing is as important as ever,” said Ned Huffman, president and CEO, Bellwether Enterprise. “We are thrilled to have Fifth Third’s continued support in our efforts to grow.”

Beekman Advisors advised Bellwether Enterprise on execution of the transaction. Financial terms were not disclosed.

About Fifth Third

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of June 30, 2020, Fifth Third had $203 billion in assets and operated 1,122 full-service banking centers and 2,456 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to approximately 53,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of June 30, 2020, had $405 billion in assets under care, of which it managed $49 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the Nasdaq® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858. Deposit and Credit products are offered by Fifth Third Bank, National Association. Member FDIC.

About Bellwether Enterprise

Bellwether Enterprise is a national, full-service commercial and multifamily mortgage banking company. As a subsidiary of Enterprise Community Investment, Bellwether Enterprise has production offices across the country and an integrated servicing platform based in Cleveland. With local market expertise, national lending relationships and financing structure experience, we provide clients with competitive, creative solutions for their financing needs. Bellwether Enterprise provides loans for a range of institutional investors including life insurance companies, pension funds, commercial banks and CMBS lenders and is a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender, Freddie Mac Optigo™ seller/servicer for Conventional and Targeted Affordable Housing Loans, Federal Housing Administration (FHA) approved Multifamily Accelerated Processing (MAP) lender and U.S. Department of Agriculture (USDA) Section 538 Rural Development lender.