CEO says sale will allow company to focus on other assets
By MortgageDaily.com staff
7/14/2003

Provident Financial Group said it has sold off subprime loans and its payment solutions provider, and intends to sell its Florida franchise.

The Cincinnati-based company reported selling $471 million in subprime residential mortgage loans at a $40 million net discount. Also reported sold was the Merchant Services business, described as "a payment solutions provider for credit and debit card acceptance programs."

In the press release, Robert L. Hoverson, president and chief executive officer said, "Removing these subprime mortgage loans from our balance sheet significantly improves our credit quality metrics, including lowering the level of non-performing assets. These subprime mortgages loans represented approximately five percent of our total loan portfolio, and approximately $53 million, or 26 percent of non-performing assets."

The company also announced its intention to sell its 13 Florida branches, which include $350 million in loans, pending regulatory approval, to RBC Centura Bank, a subsidiary of Royal Bank of Canada.

Hoverson, in the statement, said the actions would allow the company "to focus more on our core Midwest retail and commercial banking franchise."

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