by Bill McBride on 8/19/2009 04:06:00 PM
Wednesday, August 19, 2009
From Peter Eavis at the WSJ: Colonial Bank Marks a New Low for Loans
In doing the deal, BB&T is marking down Colonial loans and real-estate collateral by 37%, a number that reflects a large amount of estimated losses. The biggest mark is on construction loans; BB&T is cutting their value by 67%.And here is the BB&T presentation.
Click on slide for larger image in new window.
Yes, Colonial had some really bad loans. Peter Eavis quoted Daryl Bible, BB&T's chief financial officer: "When we looked at Colonial's portfolio versus ours, we saw a lot of borrowers we turned away."
Still it appears the BB&T / Colonial marks are the lowest yet.
Posted by Bill McBride on 8/19/2009 04:06:00 PM