In Brief: Top SBA Bank To Resume Sales

Bank of Commerce announced that this quarter it will resume selling some Small Business Administration loans on the secondary market, to boost profits.

It had suspended such sales to book more loans and build its balance sheet. However, strong demand for the loans helped the bank meet its goals, doubling its assets in the past three years.

Bank of Commerce, the leading bank SBA lender, generated $133.6 million in new loans in 1996.

The bank is now originating more loans than it can keep on its balance sheet, given its current capital level. Officials have decided to sell a percentage of future loans every quarter, which is expected to add about the same percentage to capital, because the loan portfolio will grow.

Officials estimate that the loan sales will boost income by 20% to 30%, starting this quarter.

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