Bancorp Bank, the Wilmington-based loan and payments company that has been cutting costs and restructuring its balance sheet in an attempt to boost profits, has sold $65 million in loans to First Priority Bank, Malvern.
The purchase of the 36 Philadelphia-are business loans in the portfolio boosts First Priority's total lending to $483 million. First Priority focuses on small-business loans and loans backed by business real estate, chief marketing officer Matthew B. Rovi told me.
The Bancorp said the sales leaves its remaining business loan portfolio at $335 million. The bank netted a gain of $500,000 on the sale, which closed Monday. CEO Damian Kozlowski called the deal "further progress" toward Bancorp's "strategic plan to restructure the balance sheet" and "right-size our expense base."
First Priority is looking for other loans to buy, said David E. Sparks, CEO and Chairman, in a statement. The bank has branches in suburban Philadelphia and Berks County.
Besides its shrinking portfolio of local business loans, Bancorp focuses on prepaid cards, electronic payments, securities-backed credit lines, and other financial services for non-financial companies.