Provident Sells $471MM in Subprime Loans

Provident Financial Group Inc., Cincinnati, has announced the sale of $471 million of subprime residential mortgage loans as part of an effort to align its core businesses with its corporate strategy.Provident said it sold the mortgage loans at a $40 million net discount. "Removing these subprime mortgage loans from our balance sheet significantly improves our credit quality metrics, including lowering the level of nonperforming loans," said Robert L. Hoverson, Provident's president and chief executive officer. "These subprime mortgage loans represented approximately 5% of our total loan portfolio, and approximately $53 million, or 26%, of nonperforming assets." Provident also reported the sale of its Merchant Services payment systems business and an agreement to sell its 13 Florida branches to RBC Centura Bank. Provident can be found online at http://www.provident-bank.com.