On Tuesday, Cape Bancorp (NASDAQ:CBNJ) announced the purchase of $102.0 million of Philadelphia metropolitan area based commercial loans and loan commitments from an unnamed financial institution at 102% of par, producing a $4 million gain. We are quite sure that the unnamed seller is The Bancorp (NASDAQ:TBBK). TBBK's stock price has already started to react as the news is probably leaking out, and it's still only 105% of book value. TBBK had been under selling pressure as many have speculated that the loans were bad and would be sold at a loss, such as this SA writer. But, as we have pointed out on a number of occasions, that is not the case. There is nothing but upside now as TBBK executes its unique prepaid debit card strategy.
Disclosure: The author is long TBBK.