NEW YORK, Jan. 11, 2023 /PRNewswire/ — StoneCastle Partners, LLC (“StoneCastle Partners”) announced today that it has sold its subsidiary, StoneCastle Insured Sweep, LLC (d/b/a interLINK), to Webster Financial Corporation’s (NYSE: WBS) principal bank subsidiary Webster Bank, N.A. (“Webster”).
interLINK is a technology-enabled deposit gathering platform that provides customized cash administration solutions to broker-dealers and clearing companies. StoneCastle Partners developed the interLINK platform for a prospective bank owner to utilize as an alternative funding channel to harvest low all-in cost, stable deposits, and improve overall profitability.
StoneCastle Partners is particularly focused on developing innovative deposit-funding solutions for banks. Over the past two decades, the firm has built several businesses that utilize non-traditional strategies to gather deposits, including interLINK.
“Employee-related costs are persistent and are highly susceptible to inflationary pressures of the current environment,” said George Shilowitz, co-CEO of StoneCastle Partners. “Businesses like interLINK and StoneCastle Venture’s embedded finance deposit platform provide a prospective bank owner with a new, highly scalable deposit acquisition channel. Both businesses are distinguished by their minimal customer acquisition costs and high growth rates. We believe that businesses like these create tremendous marginal enterprise value for a bank owner,” added Mr. Shilowitz.
Keefe, Bruyette & Woods, a Stifel Company, served as exclusive financial advisor and Dechert LLP served as legal advisor to StoneCastle Partners.
BofA Securities, Inc. served as exclusive financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to Webster.
Founded in 2003, StoneCastle Partners develops businesses focused on banking and associated technologies. StoneCastle Partners creates innovative platforms and disruptive technology to enhance or redefine inefficient banking processes. For the past 19 years, StoneCastle Partners has built and sold platforms to strategic buyers, including banks, asset managers, and fintechs. Over 1,000 banks trust StoneCastle Partners and use its companies’ products; for more information, visit www.scpdevco.com.
Webster Financial Corporation (NYSE: WBS) is the holding company for Webster Bank, National Association and its HSA Bank division. Webster is a leading commercial bank in the Northeast that provides a wide range of financial solutions across three differentiated lines of business: Commercial Banking, Consumer Banking and its HSA Bank division, one of the country’s largest providers of employee benefits solutions. Headquartered in Stamford, CT, Webster is a values-guided organization with more than $65 billion in assets. Its core footprint spans the northeastern U.S. from New York to Massachusetts, with certain businesses operating in extended geographies. Webster Bank is a member of the FDIC and an equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at www.websterbank.com.
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CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This communication, and all oral statements made regarding the subject matter of this communication, contain “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed acquisition. Such forward-looking statements reflect current views with respect to future events and financial performance. Statements that include the words “should,” “would,” “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “seek,” “will,” and similar statements of a future or forward-looking nature identify forward-looking statements in this material for within the meaning of the federal securities laws. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause results to differ materially from those projected in the forward-looking statements are the following: the impact that any litigation may have on the parties or the transaction; and the impact of potential legislative, regulatory and competitive changes. Any forward-looking statements speak only as of the date of this communication. StoneCastle Partners undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
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SOURCE StoneCastle Partners, LLC