Aug. 16--Susquehanna Bancshares and its subsidiary, Susquehanna Bank, sold roughly $255.8 million in vehicle loans in an off-balance sheet securitization transaction, the Lititz-based holding company said Thursday in a regulatory filing.
Susquehanna had reclassified the loans from "held for investment" to "held for sale" at the end of the second quarter, doing so at their amortized cost basis.
Susquehanna said it expects to recognize a pretax gain of $2.7 million in the third quarter from the transaction, "net of transaction expenses of approximately $1.5 million and recognition of a servicing asset of approximately 42 million."
The cash proceeds from the transaction, minus transaction costs, were $256.4 million, and will be used for "general corporate purposes," Susquehanna said.
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