Community First Bankshares said Wednesday that it has agreed to sell $30.5 million of subprime mortgages and auto installment contracts to two buyers.

Granite Mortgages Investors Corp. of Fort Lauderdale, Fla., has bought $8.5 million of one- to four-family residential mortgages, and Franklin Acceptance Corp. of Philadelphia has agreed to buy $22 million of auto installment contracts, the banking company said.

Donald R. Mengedoth, the president and chief executive officer of $6 billion-asset Community First, said the sales are part of his company's plan to exit the subprime lending business. About $30 million of subprime loans would remain in Community First's portfolio after the sales.

Community First obtained its subprime portfolio when it bought Denver- based Mountain Parks Financial in 1996.

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