Commercial financier Eastern Funding is ending operations of its specialty vehicles and equipment funding group amid a company strategic refocus.
The New York-based regional lender will start “orderly” winding down its specialty vehicles and equipment funding group, according to a July 9 company release. The decision comes as Eastern Funding parent Brookline Bank adjusts its focus to its core commercial financing solutions.
The specialty vehicles and equipment funding group financed vehicles and equipment in the towing and recovery, pupil transportation, emergency medical transit, shredding, asphalt paving, and livery industries, according to the company website. The company continues to finance laundromats, owner-occupied commercial real estate, fitness and wellness, and other businesses, and their services remain unchanged, according to the company statement.
“We deeply value the Specialty Vehicle and Equipment Group’s efforts and commitment to helping our customers achieve their financing needs and are grateful for their service,” Eastern Funding President Nancy Robles said in the release. “We will aim to make this transition as seamless as possible as we restructure our strategic goals for Eastern Funding”
Eastern Funding had 128 total employees at the end of 2023, according to the 2024 Monitor 100. The company declined to comment on the future of the specialty vehicles and equipment funding group’s employees at this time.
The company will continue to manage the existing portfolio of specialty vehicles and equipment finance loans, according to the statement.
Declining equipment finance portfolio
Brookline Bancorp [Nasdaq: BRKL] took $3.5 million in equipment financing charge-offs in the first quarter, according to the company’s May 7 10-Q filing with the Securities and Exchange Commission.
Brookline Bank recognized total past-due equipment financing of $32.4 million, or 2.4% of the equipment financing portfolio, up 95.7% compared to Dec. 31, 2023, according to the 10-Q filing.
Eastern Funding had new business volume of $541.1 million and total managed assets of $1.5 billion in 2023, according to the 2024 Monitor 100. DLL ranked 52nd in equipment financier total managed assets in the 2024 Monitor 100.
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