Refinancing for the future

Agency Banking

The background:

As insurance agencies decide to utilize mergers and acquisitions to consolidate companies or assets, stimulate growth, gain competitive advantages, and increase market share, they typically take on loans for working capital. 

Between 2016 and 2018, Smith Davis Insurance, a locally owned and operated insurance agency in Council Bluffs, IA and Papillion, NE, completed two acquisitions, carrying out two separate agency loans. 

The challenge:

Amidst the economic uncertainty that ensued in 2020, many insurance agencies, including Smith Davis Insurance, sought to refinance these loans, improving their cash flow during challenging times. 

“Once COVID-19 became a factor in the U.S., I was unsure of the future. So, I thought it would be a smart thing to refinance the loans we took out for our previous acquisitions. That’s where my relationship started with Westfield Bank” says Jeff Brehmer, CIC, President, Smith Davis Insurance.

Looking for a personalized solution, which would consolidate the two agency loans used for acquisitions, Smith Davis Insurance turned to Westfield Bank.

Our solution:

“From the start, Westfield Bank showed me that they understood our agency and the insurance industry. They understood where the value is and how to utilize my book of business to make these loans,” recounts Brehmer.

In order to create a unique solution for Smith Davis Insurance, Westfield Bank provided a loan option, which transferred the debt from the two acquisitions and combined them into one, refinanced loan. 

“The process was surprisingly easy. Being located in Iowa amidst COVID-19, everything was done virtually or over the phone. Even the closing was done virtually, so that I did not have to make a trip to Ohio. I felt very comfortable and comforted,” recalls Brehmer.

Ultimately, Smith Davis Insurance was able to pay off both sellers from the agency’s previous acquisitions. 

“It was a good partnership. I found Westfield Bank very valuable for my present needs and, now, for my future needs as far as additional capital,” notes Brehmer. 

Our Agency Banking team specializes in these loans, working solely with insurance agents. We’re uniquely equipped to empower your agency with working capital as you achieve new milestones. Working with you throughout your agency’s acquisition, merger, or perpetuation, our team of dedicated bankers is here to keep you moving forward.