Bank-America Corp. announced Friday that it intends to sell its consumer finance division, Security Pacific Financial Services.
Security Pacific makes home equity and installment loans to customers with blemished credit histories through 300 offices in 33 states. The division has $1.4 billion in loan assets, excluding a direct mail division that BankAmerica will retain.
The purchase price was not disclosed. In a written statement, chief financial officer Michael O'Neill said the bank felt it could put the capital devoted to Security Pacific to better use.
The bank is expected to use money raised from the sale to buy back stock.