Astoria Financial in Lake Success, N.Y., has agreed to sell certain nonperforming loans to Credit Suisse at a nearly $9 million loss.
The $16 billion-asset company said in a press release late Monday that it would sell loans with a carrying value of $195 million to Credit Suisse for roughly $186 million in a transaction expected to close on July 31.
Astoria moved the loans to held-for-sale status on June 30, recording an $8.7 million chargeoff and a $5.7 million loan-loss release during the second quarter.
"We are obviously very pleased with the agreement to sell these nonperforming residential loans," Monte Redman, Astoria's president and chief executive, said in the release. "We believe that this sale will have several positive impacts on the company as we move forward including, but not limited to, an improved risk profile on our loan portfolio and reduced foreclosure related expenses, as well as a positive effect on future FDIC insurance-assessment rates."