Voya Investment Management and the Illinois Bankers Association enter into a preferred vendor agreement to provide Illinois and other community banks a commercial and industrial loan acquisition and risk management program

Rhea-AI Summary

Voya Investment Management and the Illinois Bankers Association have partnered to create the Voya Senior Loan Advisory Program, which allows community and regional banks to build portfolios of senior secured commercial and industrial loans. The program provides access to new loan and secondary markets, as well as credit risk management services.

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• Voya Investment Management and the Illinois Bankers Association have partnered to create the Voya Senior Loan Advisory Program, which provides community and regional banks with access to the $1.4 trillion senior loan market. Participating banks can build portfolios of senior secured commercial and industrial loans, benefiting from Voya's market leadership, experience, relationships, and credit risk management services. The program offers loan diversification, asset growth, interest and fee income, and floating rate assets.

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NEW YORK--(BUSINESS WIRE)-- Voya Investment Management, the asset management business of Voya Financial, Inc. (NYSE: VOYA), and the Illinois Bankers Association (IBA) announced today that they have entered into a commercial and industrial (C&I) loan growth partnership program known as the Voya Senior Loan Advisory Program.

While community and small regional banks have historically excelled at small business underwriting and relationship management, Voya’s C&I program recognizes that the syndicated loan market demands a broader industry knowledge and timely action. Participating commercial banks benefit from Voya’s unique market leadership, experience, relationships, credit risk management, training and sourcing capabilities while effectively keeping independent research and decision-making within their walls, thus satisfying regulatory requirements.

Under this program, community and regional banking commercial credit professionals can build portfolios of senior secured commercial and industrial loans. These portfolios benefit from Voya IM's access to the new loan and secondary markets, strong and ongoing loan underwriting and monitoring processes which are compliant with regulatory guidelines and prudent standards. Through education and mentoring, banks learn about the implementation and monitoring of compliant portfolios that offer diversification, value recognition and loss avoidance as their core objectives.

"The IBA is thrilled to join forces with Voya IM to provide our members with an exceptional opportunity. Through this collaboration, we aim to bring enhanced experience, access, and credit risk management services to Illinois banks,” said Callan Stapleton, president of Illinois Bankers Business Services, Inc. (IBBS). “Together, we are introducing two distinct programs that will enable our members to expand their offerings with variable rate commercial and industrial loans. Voya will be an exceptional resource to add to the IBA’s preferred vendor lineup.”

Banks may work individually to build portfolios one loan at a time or as a group to share in a portfolio of select loans. “Our goal is to provide banks with a turnkey solution that combines education, preparation and implementation to enable them to enter the $1.4 trillion senior loan market,” said Randy Cameron, co-head of the Voya Bank Advisory Group. “This asset class benefits banks looking for a combination of loan diversification, asset growth, interest and fee income and floating rate assets.”

About the Illinois Bankers Association

The Illinois Bankers Association is the voice of Illinois’ banking industry, dedicated to creating a positive business climate that benefits the entire banking industry and the communities they serve. Founded in 1891, the IBA brings together state and national banks and savings banks employing more than 105,000 people in nearly 4,500 offices across the state. The IBA is proud of its diverse membership, serving all sizes of financial institutions from the smallest community bank in the state to the largest national bank in the country.

About Illinois Bankers Business Services, Inc.

Illinois Bankers Business Services, Inc. (IBBS) is the for-profit division of the Illinois Bankers Association (IBA). Each preferred vendor is carefully researched and approved by the IBBS Board of Directors – selected by bankers for bankers – to ensure quality, consistent product and service delivery. IBBS offers a full line of products and services to meet your bank’s needs. Visit www.ilbanker.com to learn more.

About Voya Investment Management

Voya Investment Management manages approximately $327 billion as of March 31, 2023 in assets across public and private fixed income, equities, multi-asset solutions and alternative strategies for institutions, financial intermediaries and individual investors, drawing on a 50-year legacy of active investing and the expertise of 300+ investment professionals. Named a Best Place to Work in Money Management by Pensions & Investments for eight consecutive years, Voya IM has cultivated a culture grounded in a commitment to understanding and anticipating clients’ needs, producing strong investment performance, and embedding diversity, equity and inclusion in its business.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230724529673/en/

Media:

Voya Financial

Kristopher Kagel

(212) 309-6568

Kristopher.Kagel@voya.com

Source: Voya Financial, Inc.

FAQ

What is the Voya Senior Loan Advisory Program?

The Voya Senior Loan Advisory Program is a partnership between Voya Investment Management and the Illinois Bankers Association that allows community and regional banks to build portfolios of senior secured commercial and industrial loans.

What benefits do participating banks receive from the program?

Participating banks benefit from Voya's market leadership, experience, relationships, and credit risk management services. They gain access to the new loan and secondary markets and can diversify their loan portfolios, achieve asset growth, generate interest and fee income, and invest in floating rate assets.

What is the size of the senior loan market?

The senior loan market is worth $1.4 trillion.

What are the core objectives of the Voya Senior Loan Advisory Program?

The core objectives of the program are loan diversification, asset growth, interest and fee income, and investment in floating rate assets.