Cole Taylor Bank said it’s in discussions with private equity firms to sell its mortgage business.
The disclosure of a letter to Cole Taylor mortgage workers came a day after Chicago-based MB Financial Inc. announced a $680 million deal to buy Rosemont-based Taylor Capital, parent of Cole Taylor Bank. During a call with analysts, MB Financial Chief Executive Mitch Feiger expressed lukewarm interest, at best, in Cole Taylor’s mortgage operations. He left open the possibility that it could be sold but also said that MB would take a closer look at it.
In a letter to mortgage workers on Tuesday, Willie Newman, Cole Taylor Mortgage President, told workers that over the past three months the unit has “talked with a significant number of potential financial partners.”
“Many of the potential partners are private equity firms with a desire to establish a major presence in mortgage banking,” Newman wrote. “These discussions have progressed and we are currently in more detailed discussions with several private equity firms.”
But he also noted that, “we are initiating more in-depth discussions with executives from MB starting this Thursday.”
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