The Bancorp says apartment complex sale to terminate without buyer cure

The Bancorp (TBBK) late Friday provided an update on the pending disposition of a certain real estate bridge lending asset. As previously disclosed, the majority of the company’s “Other Real Estate Owned” property is comprised of an apartment complex. The underlying loan balance for this property is $42.9M as of May 15, and the property is under an agreement of sale. On May 23, the agreement of sale was amended. Among other things, the amendment extended the closing date to May 30, with options for an additional 30-day extension and 60-day extension in exchange for additional consideration of $1.0M per extension. On May 30, the purchaser failed to consummate the closing or secure a closing extension pursuant to the terms of the amendment. Absent satisfactory cure by the purchaser, the agreement of sale will terminate. In the event of termination, The Bancorp would retain all earnest money deposits received to date, totaling $3.0M, as well as any additional property investments made by the purchaser through the termination date.