Corus Bankshares in Chicago plans to use the proceeds from the sale of its student loan assets to pad its already substantial commercial real estate portfolio.

The $2.5 billion-asset company sold the bulk of its $450 million student loan business Tuesday, eight months after settling a lawsuit in which the Justice Department claimed Corus improperly filed insurance claims on thousands of defaulted student loans without first seeking payment from the borrowers. The company paid $7.8 million to settle the suit. Corus said it would use the $20 million it received from the sale to expand its commercial real estate portfolio, which stood at nearly $1.2 billion at the end of the third quarter and accounted for more than 61% of its lending activity.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.