(Wednesday's Edition Follows)
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Studebaker-Worthington sold to Main Street Bank
State Bank of Long Island Signs Agreement for Sale of Leasing Subsidiary Assets
(JERICHO, N.Y) -- State Bancorp, Inc. (Nasdaq:STBC), parent company of State Bank of Long Island ("State Bank"), announced today that an agreement has been signed with Main Street Bank of Kingwood, Texas, for the sale of substantially all of the assets of State Bank's leasing subsidiary, Studebaker-Worthington Leasing Corp. ("Studebaker"). Studebaker will operate as a division of Main Street Bank and continue its national equipment leasing business from its present Jericho, New York office. Studebaker's senior management, including Kenneth Paston, its Chief Executive Officer, will continue with the Studebaker operation. Main Street Bank has completed the necessary due diligence for this transaction and, subject to customary closing conditions, the sale is scheduled to close in the second quarter of 2008.
"We are pleased that the agreement for the sale of the assets of Studebaker, which has been in process for several months, has been signed. As previously stated, the sale of the leasing subsidiary will allow State Bank to redeploy the capital resources formerly committed to the leasing operation towards our core business competencies resulting in annual cost savings to State Bank of approximately $3.0 million in cash operating expense," said Thomas M. O'Brien, State Bank President and Chief Executive Officer.
Tom Depping, Chairman and Chief Executive Officer of Main Street Bank, stated, "With the addition of the highly dedicated Studebaker sales and marketing team, Main Street will continue to expand its national equipment leasing franchise under the Studebaker-Worthington brand. We are excited about joining forces with Ken Paston and his qualified group of equipment leasing professionals and we look forward to providing Studebaker's customers with the same high quality service they have come to expect and enjoy."
State Bancorp, Inc. (the "Company") is the holding company for State Bank of Long Island, the largest independent commercial bank headquartered on Long Island. In addition to its seventeen branches located in the counties of Nassau, Suffolk, Queens and Manhattan, State Bank maintains its corporate headquarters and lending facility in Jericho. State Bank has built a reputation for providing high-quality personal service to meet the needs of our diverse customer base, which includes commercial real estate owners and developers, small to middle market businesses, professional service firms, municipalities and consumers. State Bank maintains a web site at www.statebankofli.com with corporate, investor and branch banking information.
Main Street Bank, headquartered in Kingwood Texas, is a national leader in providing equipment financing to businesses. It maintains three retail branch offices in the Houston market area and provides equipment financing throughout the country with its largest market concentrations in California, Texas, Florida and New York. Main Street Bank's web site is www.msbanktx.com . Main Street Bank is a wholly owned subsidiary of MS Financial, Inc., Kingwood, Texas.
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