BLUE BELL, Pa. Progress Financial Corp. said that it would sell off part of its leasing division and boost loan loss reserves at Progress Bank by $1.2 million.
The thrift said last week it had agreed to sell the Maryland division of its Equipment Leasing Co. to Sandy Spring Bancorp in Olney, Md. Progress would not disclose the sum but said that it expects a $1.7 million profit on the sale, which is expected to close in January.
The sale is part of the $878 million-asset companys strategy to consolidate its leasing operations in Pennsylvania and to comply with regulatory limits on the level of leasing assets a federal thrift may have, W. Kirk Wycoff, president and chief executive of Progress, said in a news release.
Progress also said it would add to loan loss reserves because of market conditions.
Although it has not experienced a significant growth in nonaccrual loans, the thrift will boost reserves to about $8 million, up from $6.8 million, said Progress chief financial officer, Michael B. High.