Centier Bank: SBA business acquisition lending record
Centier Bank (home state IN) approved 51 SBA 7(a) loans to buy existing businesses since FY2018, totaling $37.9M. The median loan was $300,000. It ranks number 172 of 280 lenders by count and made 0.1% of all SBA acquisition loans nationally.
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What this tells a borrower
- Deal size it funds. Half of its acquisition loans fell between $163,250 and $784,850. If your deal sits well outside that band, this lender may be less practiced at it.
- Geographic reach. Indiana is the largest state (86% of loans). Loans appear in only 4 states, which points to a regional lender.
- Industry concentration. Full-Service Restaurants is 14% of its acquisition loans. The mix is spread across several industries.
- Overall 7(a) volume. 348 SBA 7(a) loans of any purpose since FY2020, totaling $104M. 80% of its acquisition loans were processed under the Preferred Lenders Program.
- Franchise share. 33% of its acquisition loans involved a franchise brand, against 18% for all lenders.
- Seasoned performance. Of its loans from FY2019 to FY2021: 13.6% charged off, 287% higher than the 3.5% national average.
Centier Bank acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $400K | $200,000 | |
| FY2020 | 9 | $5.5M | $153,000 | |
| FY2021 | 11 | $6.6M | $180,000 | |
| FY2022 | 10 | $4.9M | $325,000 | |
| FY2023 | 6 | $4.9M | $477,150 | |
| FY2024 | 5 | $5.1M | $830,000 | |
| FY2025 | 2 | $2.3M | $1,150,000 | |
| FY2026 | 6 | $8.1M | $1,003,750 |
How often do these acquisition loans fail?
Of the 22 Centier Bank acquisition loans approved from FY2019 to FY2021 (the seasoned cohort, every loan at least about five years old), 3 have been charged off by the SBA, a rate of 13.6% by loan count and 19.4% by dollars. 8 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the FY2018 to FY2021 cohort is 3.5%, so Centier Bank is 287% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Terms signed in the LOI shape the purchase agreement that follows.
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States served
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Indiana | 44 | 86.3% | $30.6M | |
| 2 | Illinois | 4 | 7.8% | $1.1M | |
| 3 | Michigan | 2 | 3.9% | $4.3M | |
| 4 | Pennsylvania | 1 | 2.0% | $2M |
Industries financed
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 7 | 13.7% | $3M | |
| 2 | Limited-Service Restaurants | 5 | 9.8% | $938K | |
| 3 | Fitness and Recreational Sports Centers | 3 | 5.9% | $587K | |
| 4 | All Other Miscellaneous Fabricated Metal Product Manufacturing | 2 | 3.9% | $4.3M | |
| 5 | Other Personal and Household Goods Repair and Maintenance | 2 | 3.9% | $2.7M | |
| 6 | Beer, Wine, and Liquor Retailers | 2 | 3.9% | $2.4M | |
| 7 | Gasoline Stations with Convenience Stores | 2 | 3.9% | $1.4M | |
| 8 | Automotive Oil Change and Lubrication Shops | 2 | 3.9% | $360K | |
| 9 | Insurance Agencies and Brokerages | 2 | 3.9% | $293K | |
| 10 | Septic Tank and Related Services | 2 | 3.9% | $201K |
The purchase agreement decides what you bought, not the loan approval.
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Franchise brands financed
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Dairy Queen | 4 | 7.8% | $677K | |
| 2 | The UPS Store | 2 | 3.9% | $798K | |
| 3 | Midas | 2 | 3.9% | $360K | |
| 4 | Allstate Home Inspection | 2 | 3.9% | $293K | |
| 5 | Anytime Fitness | 2 | 3.9% | $237K | |
| 6 | Board & Brush Creative Studios | 2 | 3.9% | $147K | |
| 7 | Subway | 1 | 2.0% | $196K |
Questions buyers ask
Does Centier Bank make SBA acquisition loans?
Yes. Centier Bank approved 51 SBA 7(a) loans to buy existing businesses from FY2018 to FY2026, ranking number 172 of 280 lenders with 25 or more such loans. The SBA file shows past approvals only; it cannot tell you whether the lender will approve a particular buyer or deal.
How large are Centier Bank's acquisition loans?
The median was $300,000, with the middle half between $163,250 and $784,850. The national median is $645,250, so this lender's typical loan is 54% lower than the national figure.
Which states does Centier Bank lend in?
Indiana (44), Illinois (4), Michigan (2), Pennsylvania (1). Its loans appear in 4 states, so it is closer to a regional lender.
Which industries does Centier Bank finance?
Full-Service Restaurants (7), Limited-Service Restaurants (5), Fitness and Recreational Sports Centers (3), All Other Miscellaneous Fabricated Metal Product Manufacturing (2), Other Personal and Household Goods Repair and Maintenance (2). The top industry is 14% of its acquisition loans.
How have Centier Bank's acquisition loans performed?
Of 22 loans approved FY2019 to FY2021: 13.6% charged off, 287% higher than the 3.5% national acquisition average. Charge-offs reflect the borrowers and industries a lender serves as well as its underwriting.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- Indiana acquisitions
- Illinois acquisitions
- Michigan acquisitions
- Full-Service Restaurants
- Limited-Service Restaurants
- Fitness and Recreational Sports Centers
- All lenders
Figures are aggregates of public SBA data. This page is not provided or endorsed by Centier Bank.