First Internet Bancorp to Sell $869 Million in Loans to Blackstone Real Estate
By Katherine Hamilton
First Internet Bancorp, the parent company of First Internet Bank, has agreed to sell up to $869 million in loans to Blackstone.
The performing single tenant lease financing loans will go to affiliates of Blackstone Real Estate Debt Strategies, the two companies said Wednesday.
They are expected to be sold at a price of about 95% of the unpaid principal balance, including transaction costs. The deal is set to close Sept. 18.
Once the transaction is closed, First Bank plans to move $550 million of deposit balances off-balance sheet in an effort to provide an increase to its tangible common equity ratio. The remaining proceeds will be used to fund near-term loan growth opportunities, with the option to move more deposits off-balance sheet.
The transaction should lead to increases in First Bank's regulatory capital ratios because it will reduce loan balances and risk-weighted assets, offsetting the impact on shareholders' equity, they said. For Blackstone Real Estate, the deal will follow the acquisition of $22 billion in commercial real estate loan portfolios over the past 24 months.
First Internet will retain customer-facing servicing responsibilities for all the loans sold.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
September 10, 2025 17:09 ET (21:09 GMT)
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