Deal to quadruple auto finance origination capacity and reduce credit application response time to a matter of seconds
IRVING, Texas, June 11, 2025 (GLOBE NEWSWIRE) — Arra Finance, LLC (“Arra” or the “Company”), a subprime indirect auto finance company, today announced that it has entered into a definitive agreement to acquire the auto financing division of Crescent Bank (“Crescent”), a New Orleans-based FDIC insured bank with approximately $1 billion in assets that has provided nationwide indirect auto lending since 1991. The deal accelerates the rapid expansion of Arra’s platform, enhancing its technology stack and analytics capacity well ahead of growth expectations. Crescent will retain its branch and online retail banking platforms, as well as its commercial lending program, and Arra will become the servicer for Crescent’s $815 million originated auto loan portfolio. The transaction is expected to close in 3Q 2025. Financial terms were not disclosed.
As a well-established operator in the subprime auto financing space, Crescent has originated upwards of $5.3 billion in auto loans nationwide over its 30-year history and $652 million in the last two years. This acquisition brings Crescent’s e-contracting, internal loan servicing and accelerated auto-decision capabilities to the Arra platform, alongside advanced analytics and additional fraud protection tools in underwriting and funding.
With financial backing from Obra Capital (“Obra”), Arra now has the operational bandwidth and capital structure necessary to provide a comprehensive suite of financing solutions to auto dealers across the country. Arra expects to rapidly scale delivery of customer financing solutions to dealers by leveraging Crescent’s existing operations, with a significantly increased auto finance origination capacity, larger dealer base and the ability to respond to credit applications within seconds of submission.
As part of the acquisition, Arra will welcome approximately 180 new employees from Crescent, expanding Arra’s best-in-class team by a factor of six. This includes 24 new sales team members, who will support the deployment of Arra’s capital base and provide a consistent touchpoint for new and existing dealer customers alike. The new additions will continue to be primarily based in Carrollton, Texas, supporting a seamless operational integration while opening new pathways for opportunity, as enabled by Arra’s access to asset-backed financing solutions.
“With today’s announcement, we have rapidly advanced Arra’s growth trajectory, substantially improving our ability to be the premier financing partner for franchise and select independent dealers,” said Kenn Wardle, Chief Executive Officer of Arra Finance. “After only six months in market, we are on track to outpace our growth targets by a number of years, and we have developed the platform capabilities necessary to deliver responses to credit applications in a matter of seconds. I look forward to welcoming our new team members as we bring our combined offerings to market and continue to streamline the car buying experience for dealers and consumers across the country.”
Gary Solomon Sr., Chairman of Crescent Bank praised the transaction, stating: “Partnering with Arra and Obra has ensured the talent, momentum and reputation Crescent has garnered over the years will continue to support the auto industry, as Crescent Bank shifts its focus to our core retail banking business.” Crescent Bank has significantly grown its online banking presence nationwide in recent years, particularly in its offering of Certificates of Deposits. Mr. Solomon added, “This is a pivotal moment for Crescent Bank, as we refocus our investment strategy in support of our local New Orleans area community and nationwide customers alike.”
“Today’s announcement is a major growth milestone for Arra, and a testament to the opportunity in the auto finance market,” added Blair Wallace, President and CEO of Obra. “With the capital structure and flexibility provided by Obra’s insurance company balance sheets, Arra has taken decisive and aggressive steps to meet the needs of dealers across the country and become a leading player in the subprime space. The business is capitalized for success in the long term, and we look forward to seeing what’s next.”
About Arra Finance
Arra Finance is a subprime indirect auto finance company that purchases and services retail installment contracts originated by U.S. automobile dealers. Arra offers fast, simplified solutions and options for dealers. The company’s cutting-edge auto finance platform provides more than 1,200 franchise and independent dealerships across 15 states (with planned business expansion to dealerships in 37 states) with auto financing solutions for used car buyers. Its scalable origination system and data warehouse provide dealers with access to finance solutions and enables them to facilitate auto sales for the dealership’s customers. For more information about Arra Finance, please visit www.arrafinance.com.
About Crescent Bank
Crescent Bank is a Louisiana chartered, FDIC insured bank which has served the New Orleans area community since 1991 providing retail banking services and direct lending to businesses and consumers. Shortly after its founding, Crescent Bank began to open loan production offices throughout Louisiana to provide auto loans to consumers who were not being served by traditional lending institutions. As the bank succeeded and grew, its geographical lending footprint expanded nationwide. In recent years it has further expanded its retail operations to include offering certificates of deposits to consumers and investors in all states.
About Obra Capital
Obra is a specialized alternative asset management firm with approximately $5.8 billion in capital under management as of May 31, 2025. Obra provides investment products and solutions across insurance, multi-sector credit, asset-based finance and longevity investment strategies. Obra aims to generate long-term value and attractive returns for investors through a variety of funds and separate accounts. With capabilities in investing, originating, structuring and servicing, Obra strives to provide differentiated investment opportunities and capital solutions for investors worldwide. For more information about Obra and its registered investment advisors, please visit www.obra.com.
Media Contact:
Dan Gagnier
Gagnier Communications
Obra@gagnierfc.com
646-569-5897
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