Search
 

Community Banks Holding Distressed Assets

The following story of two community banks illustrates the multi-layered, and sometimes competing, issues that must be navigated by these institutions…

By Erika Morphy - Washington, DC correspondent for GlobeSt.com. | Updated on April 01, 2010

The following story of two community banks illustrates the multi-layered, and sometimes competing, issues that must be navigated by these institutions as they seek to deal with the sour real estate loans on their balance sheet. Both banks had roughly the same amount of distress, but they had vastly different perceptions of the economic downturn, says Jim Gardner, chairman of Dallas- based Commerce Street Capital LLC. One believed there would be a V-shaped recovery. That bank almost went under because it waited so long to deal with its distressed loans-and it will still be touch-and-go for a while.

The other had a more pessimistic view of the economy and began raising new capital. It will be in for a rough time but has a better chance of survival, says Gardner, who is assisting both institutions with the fundraising.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.