ROCHESTER, N.Y. -- Rochester Community Savings Bank said it has completed the sale of Shadow Lawn Savings Bank of West Long Branch, N.J., to Sovereign Bancorp Inc.
The Rochester thrift said it expects the $79 million Cash transaction to result in a pretax gain of more than $20 million, which it will record in the third fiscal quarter that ended Aug. 1.
In the third quarter ended Aug. 1, 1993, Rochester Community Savings reported a loss of $72.7 million, or $5.37 a share, on a loan loss provision of $9.3 million.
Rochester Community said the sale marks the completion of its problem--asset disposition program. Shadow Lawn's nonperforming assets made up 46% of Rochester Community's total at the end of the second quarter.
The $5.8 billion--asset Sovereign, which is based in Wyomissing, Pa., turned Shadow Lawn's 17 offices into branches of Sovereign's New Jersey bank. The offices in Monmouth and Ocean Counties "fill in the middle of Sovereign's current New Jersey market area," said president and chief executive officer Jay S. Sidhu, president and Chief executive officer of Sovereign.