The Bancorp in Wilmington, Del., has sold nearly $267 million of commercial loans to an investor group.
The $4.3 billion-asset company disclosed in a regulatory filing Wednesday that Walnut Street, a newly formed entity, bought the portfolio. AG Mortgage Value Partners owns the other 51% of the entity, while The Bancorp owns the remaining stake.
The new entity paid for the loans with $194 million in bonds with a 1.5% annual interest rate and a $15.4 million subordinate note that will bear 10% annual interest. The bonds and note will mature in December 2024. The portfolio has an adjusted carrying value of $213.5 million.
The Bancorp said it realized a $3.9 million loss from the sale, which it recorded in the fourth quarter.
