Cole Taylor Bank, the parent company of Cole Taylor Mortgage, may be looking to offload its mortgage business, according to an internal letter published with the bank's latest Securities and Exchange Commission filing.
In a letter to employees, Cole Taylor Mortgage President Willie Newman reveals the company is talking to potential financial partners—namely private equity firms—that have expressed an interest in the mortgage banking side of the financial services industry.
The letter does not explain what type of transactions are on the table, but it does note a high level of interest in working with equity firms interested in the mortgage side of the business.
"We have talked with a significant number of potential financial partners," Newman wrote in his letter to employees.
"Many of the potential partners are private equity firms with a desire to establish a major presence in mortgage banking. These discussions have progressed and we are currently in more detailed discussions with several private equity firms."
He added, "The non-bank segment of the mortgage banking industry has grown dramatically in the last several years. Therefore, this is a very exciting time to work with private equity to determine how to build a major mortgage market participant."
The announcement comes just one day after Cole Taylor Bank’s parent company, Taylor Capital, announced that it’s being acquired by Chicago-based MB Financial, the parent of MB Financial Bank.