Marine Midland Bank and Ford Motor Credit Co. Friday finalized the agreement to sell the bank's automotive finance subsidiary to the Ford Motor Co. division. No purchase price was given.
As part of the deal, Marine will retain the majority of Marine Midland Automotive Financial Corp.'s current $4 billion portfolio of automotive loans. It will continue processing loans and managing and servicing the portfolio from Buffalo, retaining 550 Buffalo employees.
Marine also will continue to make auto loans directly through its in-state branch system and indirectly through New York auto dealers.
In the transaction, Ford Motor Credit acquires Marine Midland Automotive Financial Corp. common stock, nine regional sales offices primarily outside the state and certain dealer floor-plan receivables. The 120 Marine employees currently staffing the nine offices become Ford personnel. Two New York offices and one New Jersey office were retained by Marine.
The automobile giant also assumes contracts to provide auto loans through Jaguar and Mazda auto dealers. It will set up a new subsidiary in Nashville to market auto loans through non-Ford auto dealers.
Negotiations between the two parties originally began in April and a definitive agreement was announced early last month.