Philadelphia-based Republic First Bancorp Inc., the holding company for Republic Bank, announced that it has completed the sale of $59 million of commercial real estate loans and foreclosed properties to a single unnamed investor.
According to Republic First Bancorp, the loans and foreclosed properties had a book balance of $45.1 million and included $28.4 million of non-accrual loans and other real estate owned. Net proceeds amounted to $30.6 million, and the company expects to incur a loss of approximately $14.5 million in the quarter ending Dec. 31 as a result of the sale.
‘Strengthening the balance sheet has been a top priority over the last two years,’ says Harry D. Madonna, the company's chairman and CEO. ‘We have strengthened our capital position and brought stabilization to the balance sheet in an incredibly challenging economic environment. We believe this transaction represents the final step in completing the transformation, and we anxiously look forward to building out our model to serve the customers in our market.’