JACKSONVILLE, Fla.--(BUSINESS WIRE)--TIAA Bank announced today the acquisition of a $1.5 billion portfolio of healthcare equipment leases and loans from GE Capital’s Healthcare Equipment Finance (HEF) business. This significantly expands TIAA Bank’s commercial banking business and enhances its ability to provide a full range of financial solutions to institutional clients and serve an even greater number of healthcare providers. The sale comes as GE Capital seeks to become smaller and more focused.
In addition, the parties have entered into a five-year vendor financing agreement for U.S. customers of GE Healthcare. GE Healthcare Equipment Finance’s leadership, infrastructure and salesforce will be integrated into GE Healthcare in 2019 and the team will continue to originate and service transactions under a co-branding arrangement with TIAA Bank.
The acquired healthcare portfolio includes loans and leases to approximately 1,100 hospitals as well as 3,600 physician practices and diagnostic and imaging centers across the United States. Assets financed include imaging, monitoring, respiratory, surgical, ultrasound and lab equipment.
“TIAA is dedicated to delivering financial solutions to institutional clients, including those in the healthcare industry,” said Lori Dickerson Fouché, senior executive vice president and CEO of Retail & Institutional Financial Services at TIAA. “This transaction expands our ability to meet the complete financial needs of hospitals and universities we serve, allowing them to fund their operations, achieve strategic goals and continue to provide high-quality care to millions of Americans.”
“This agreement with GE Capital supports our long-term asset growth plan and provides scale and portfolio diversification while significantly expanding our on-going relationship with GE, a top-tier healthcare equipment manufacturer,” said Blake Wilson, CEO of TIAA’s Retail Financial Services and chairman and CEO of TIAA Bank. “The healthcare industry is dynamic and ever-changing, and the need for new healthcare equipment continues to grow at a rapid pace. This deal will allow TIAA Bank and GE’s healthcare finance business to continue to help clients with their financing needs for years to come.”
“This is an excellent outcome for GE Capital, GE Healthcare and its customers,” said Trevor Schauenberg, president and CEO of GE Capital Industrial Finance. “TIAA Bank is a well-known, highly respected institution and we look forward to working with its outstanding team, ensuring a strong foundation for the future and seamless continuity of service for our U.S. customers. With this portfolio sale and financing alliance, we are expanding our funding capability and improving our competitive offerings for our customers.”
TIAA Bank for many years has offered a wide range of commercial banking solutions to its clients, including business banking, term loans, lines of credit, real estate and equipment financing. The addition of this portfolio will enable TIAA to provide an even more comprehensive range of services to this strategic growth market.
About TIAA Bank
As a part of TIAA’s Retail & Institutional Financial Services business, TIAA Bank, a division of TIAA, FSB, provides full-service, nationwide banking and lending services to consumer, commercial and institutional clients through a variety of channels, including online, its Florida-based financial centers and at other business offices throughout the country. More information on TIAA Bank can be found at TIAABank.com.
About TIAA
With an award-winning1 track record for consistent investment performance, TIAA (TIAA.org) is the leading provider of financial services in the academic, research, medical, cultural and government fields. TIAA has $1 trillion in assets under management (as of 9/30/20182) and offers a wide range of financial solutions, including investing, banking, advice and education, and retirement services.
About GE Capital
GE Capital, headquartered in Norwalk, CT, is the financial services division of GE, focused on serving customers and markets aligned with GE’s industrial businesses. From emerging markets to developed economies, our focused team of finance experts connect capital to infrastructure and deliver innovative financial solutions that help make the world work better. For more information, please visit www.gecapital.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be protected by the safe harbor provided therein. We generally identify forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “would,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “projects,” “strategy,” “future,” “opportunity,” “will likely result” or the negative version of those words or other comparable words. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, you are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.
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1 The Lipper Large Fund Award is given to the group with the lowest average decile ranking of three years’ Consistent Return for eligible funds over the three-year period ended 11/30/12 (36 fund companies), 11/30/13 (48), 11/30/14 (48), 11/30/15 (37), 11/30/16 (34) and 11/30/17 (34) with at least five equity, five bond, or three mixed-asset portfolios. Note this award pertains to mutual funds within the TIAA-CREF group of mutual funds; other funds distributed by Nuveen Securities were not included. From Thomson Reuters Lipper Awards, © 2018 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. Past performance does not guarantee future results. Certain funds have fee waivers in effect. Without such waivers ratings could be lower. For current performance, rankings and prospectuses, please visit the Research and Performance section on 3 TIAA.org. Securities offered through Nuveen, LLC, and TIAA-CREF Individual & Institutional Services, LLC, members FINRA and SIPC.
2 Based on $1 trillion of assets under management across Nuveen Investments affiliates and TIAA investment management teams as of 9/30/18.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.
Deposit and lending products are provided by TIAA Bank®, a division of TIAA, FSB. Member FDIC. Equal Housing Lender.
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