The Bancorp in Wilmington, Del., has sold a loan portfolio as part of its effort to wind down its commercial loan book.
The $4.4 billion-asset company said Wednesday that it sold $65 million of mainly commercial real estate loans. It did not name the buyer, but First Priority Financial in Malvern, Pa., announced separately that it had acquired the loans.
Neither company disclosed the price of the transaction.
The sale reduced The Bancorp's discontinued commercial loans 16% to $335 million, and it recorded a $500,000 gain on the sale, the company said in a release.
The Bancorp is trying to restructure its balance sheet by adding more securities-backed lines of credit, Small Business Administration loans, leasing agreements and commercial mortgage-backed securities lending lines, all of which have had lower loss levels, Chief Executive Damian Kozlowski said in the release.
The Bancorp earlier this month raised $74 million in a stock sale to fund business investments. It also recently announced that it's being investigated by federal regulators for restating three years of financial statements and said that its tax returns for 2012, 2013 and 2014 will be audited by the Internal Revenue Service.