Allstate Commercial Bank has agreed to sell its commercial banking business to a private equity firm led by former Citigroup executive Brian White.
White is expected to take the bank private after the sale.
The deal is valued at more than $5 billion.
White, who left Citigroup last year, was widely expected to lead Allstate through the bank’s transformation into a commercial bank.
But a deal with a private-equity group was never in the cards.
The bank is not expected to be profitable in 2020, and has been struggling to turn a profit.
It will be restructured to become a commercial lender, though, with its commercial lending activities limited to mortgage finance and other residential loans.
White has been credited with building a strong relationship with lenders, including the Bank of America, while at Citigroup.
Allstate is expected be profitable by the end of 2020, according to analysts.