Printer Friendly

COMMAND CREDIT TAKES EQUITY POSITION IN SUBURBAN BANKSHARES

 ROCKVILLE CENTRE, N.Y., Sept. 30 /PRNewswire/ -- Command Credit Corp. (NASDAQ: CDMD), an international diversified financial services firm, announced today that it has purchased 4.8 percent of Suburban Bankshares Inc. of Lake Worth, Fla. for an undisclosed amount.
 Command has 14 signed affinity group credit card contracts that represent a combined membership of more than 15,000,000 members. Command is scheduled to implement these contracts over the next six months. As a means of speeding up the implementation of these programs, the board of directors of Command has decided to pursue a minority equity interest (the purchase of 9.9 percent or less of bank shares does not require regulatory approval or intervention) in a number of strong financial institutions.
 With respect to Suburban Bankshares, both Command and Suburban are in agreement regarding Command's purchase of 4.8 percent of the bank. This action gives Command the opportunity to begin implementation of its affinity group contracts without waiting for the bank regulatory approval process which could extend beyond year end. It is this lengthy regulatory process that has prompted this action. This purchase of 4.8 percent of Suburban Bankshares by Command replaces any earlier agreements between the two companies.
 Simultaneously with the purchase, Suburban has agreed to sign a contract with Command for it to become a marketer and servicer for Suburban's credit card portfolio. Both Suburban and Command plan to begin the credit card programs as soon as possible.
 William G. Lucas, president of Command indicated that, "This action enables Command to distribute its resources with many banks in several regions of the country rather than being confined to a single area. Under this new approach it is anticipated that by the time the Suburban transaction would have completed the regulatory approval process Command will already be associated, by an equity position, with at least four banks and have credit card programs in various stages of implementation." Lucas' remarks were further echoed by Philip Leone, senior vice president and chief financial officer of Command, a career banker who added, "We see this change in strategic direction as one that will enable the company to accelerate the delivery of its products into broader markets."
 As part of Command's financial services activities the company recently acquired Franklin Credit & Leasing Corp. and Paramount Equities Group Inc., a leasing company and mortgage company respectively whose revenues will be consolidated into Command's on an ongoing basis.
 -0- 9/30/93
 /CONTACT: Anne Wolfrom of Command Credit, 516-764-1117; or Dean Vegosen of Suburban Bankshares, 407-964-6100/
 (CDMD)


CO: Command Credit Corp.; Suburban Bankshares Inc. ST: New York, Florida IN: FIN SU:

MC -- DV001 -- 7183 09/30/93 10:16 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 30, 1993
Words:447
Previous Article:BIG ROCK POINT BECOMES LONGEST RUNNING NUCLEAR POWER PLANT IN THE NATION
Next Article:AVATAR HOLDINGS ANNOUNCES PRIVATE PURCHASE
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters