by Calculated Risk on 10/02/2009 03:09:00 PM
Friday, October 02, 2009
Since it is Friday ...
From Bloomberg: Banks With 20% Unpaid Loans at 18-Year High Amid Recovery Doubt
The number of U.S. lenders that can’t collect on at least 20 percent of their loans hit an 18-year high, signaling that more bank failures and losses could slow an economic recovery.And here is a classic quote:
[There are] 26 firms with more than one-fifth of their loans 90 days overdue or not accruing interest as of June 30 -- a level of distress almost five times the national average ...
For banks with 20 percent of loans overdue, “either they’ve got a massive amount of capital, or the FDIC just hasn’t gotten around to them,” said Jeff Davis, an analyst with FTN Equity Capital Markets in Nashville.
“Everything was so positive for so long in this area, it came as a surprise when it stopped,” said John Medernach, Benchmark’s CEO ...Hey, Hoocoodanode? (Who could have known?)
“I stop and think of all the rich farmland that has been developed into subdivisions during the boom years,” Medernach said. “It makes you wonder what we’ve been doing.”
The article includes a table with all 62 banks. Here are the "leaders" according to Bloomberg:
|Company||Location||Nonaccrual Loans as % of Total|
|Community Bank of Lemont||Lemont, IL||49.45|
|Eastern Savings Bank FSB||Hunt Valley, MD||48.01|
|City Bank||Lynnwood, WA||43.95|
Posted by Calculated Risk on 10/02/2009 03:09:00 PM