Columbus, Ohio-based Huntington Bancshares Inc. has restructured its relationship with subprime lender Franklin Credit Management Corp.
The restructuring has eliminated $615 million of troubled loans from Franklin, according to a Huntington press statement. The initiative has resulted in a one-time $160 million after-tax benefit, says Stephen D. Steinour, chairman, president and CEO of Huntington.
‘Importantly, we can accelerate the resolution and recovery of the value embedded in these assets, as this relieves Franklin from the ownership of these assets," Steinour says. "In addition, Franklin can devote more of their attention to developing their servicing business."
SOURCE: Hunting Bancshares Inc.