State Bancorp has signed an agreement with Main Street Bank for the sale of substantially all of the assets of State Bank's leasing subsidiary, Studebaker-Worthington Leasing.
Studebaker will operate as a division of Main Street Bank and continue its national equipment leasing business from its present office in Jericho, New York. Studebaker’s senior management, including Kenneth Paston, its CEO, will continue with the Studebaker operation.
Main Street Bank has completed the necessary due diligence for the transaction and, subject to customary closing conditions, the sale is scheduled to close in the second quarter of 2008.
Thomas O’Brien, president and CEO of State Bank, said: We are pleased that the agreement for the sale of the assets of Studebaker, which has been in process for several months, has been signed.
As previously stated, the sale of the leasing subsidiary will allow State Bank to redeploy the capital resources formerly committed to the leasing operation towards our core business competencies resulting in annual cost savings to State Bank of approximately $3 million in cash operating expense.