State Bancorp Inc. of Jericho, N.Y., announced Wednesday that it has agreed to sell its leasing subsidiary to Main Street Bank in Kingwood, Tex.
The $1.6 billion-asset State said selling Studebaker-Worthington Leasing Corp. would save it about $3 million a year in expenses and free up capital it would reinvest in its core banking business.
The $167 million-asset Main Street, meanwhile, would continue its expansion in the leasing business.
The bank, which specializes in financing equipment leases for businesses including health clubs, restaurants, and medical facilities, raised $10 million last year to expand its leasing operations. Tom Depping, its chairman and chief executive, said it has commitments to raise another $10 million that it plans to use to buy other leasing businesses.
“We think there is a big opportunity for us,” Mr. Depping said in an interview Wednesday. “There are a lot of banks, like State Bank, looking to get back to their core business.”
Neither company would disclose the price of the deal. It is expected to close this quarter.
Studebaker-Worthington would retain its name and management team.
