BlogArt: Corus, R.I.P.

Sep 24, 2009 02:15 UTC

On Tuesday, Lingling Wei and Anton Troianovski published an interesting article in the WSJ about the auction process surrounding Corus Bank’s busted condo loans. Readers who saw my recent post on commercial real estate prices are aware that not many transactions are taking place, making it difficult to get a good sense for CRE prices. These condo loan auctions will provide very important data points in that regard…

About 10 investors are expected to submit bids to the Federal Deposit Insurance Corp. by Friday for $5 billion in condominium loans and other property held by the failed Corus Bank, in a key test of U.S. commercial real-estate values.

The government-run auction, with loans backed by more than 100 real-estate developments, is the largest bulk sale of commercial-property assets since the financial crisis erupted. Bidders are looking at some of the highest-profile condo projects in the U.S., scattered from the waterfront Paramount Bay in Miami to Juhl in downtown Las Vegas.

On the way to O’Hare last Sunday, I passed by an old Corus branch, now re-branded MB Financial…

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I wonder: Is the sun rising or setting on the U.S. banking system?

COMMENT

yeah, but corus’s portfolio is pretty well known and fairly basic. Its just condos and condo construction projects. Nothing exotic, and something that can be bid on by something other than banks and adventurous hedge funds.

Posted by Andrew | Report as abusive

Corus, gone

Sep 11, 2009 23:51 UTC

Headlining this week’s bank failures is Corus out of Chicago. Condo loans in Florida and other bubbly states did ‘em in. There’s an odd item in the press release. It lists the bank’s deposits as “approximately” $7 billion. I can’t remember seeing that modifier in a bank failure press release. When you read enough of them, the littlest things jump out at you…

#90

  • Failed bank: Corus Bank, Chicago IL
  • Acquiring bank: MB Financial Bank, Chicago IL
  • Vitals: As of June 30th, assets of $7 billion, deposits of “approx.” $7 billion
  • DIF damage: $1.7 billion

From WSJ’s article on Corus’ failure: “More than half of the bank’s $3.9 billion in condo construction loans were in nonaccrual or foreclosure in April.”

#91

  • Failed bank: Brickwell Community Bank, Woodbury MN
  • Acquiring bank: CorTrust bank, Mitchell SD
  • Vitals: As of July 24th, assets of $72 million, deposits of $63 million
  • DIF damage: $22 million

Mitchell, SD … famous for the Corn Palace!

#92

  • Failed bank: Venture Bank, Lacy WA
  • Acquiring bank: First Citizens Bank & Trust, Raleigh NC
  • Vitals: as of July 28th, assets of $970m, deposits of $903m
  • DIF damage: $298m
COMMENT

Interesting article in the Cleveland Plain Dealer today on AmTrust. This bank was ordered to increase capital but it hasn’t. Its capital base is deteriorating, 10 percent of its loans are not being repaid, it is losing money at an accelerating rate. About the only positive thing, it is is a positive thing, is that AmTrust is still out there originating loans, $8.5 billion worth in the 2nd quarter alone. Now the stimulus folks may like that but I’m not sure I do.

Posted by sangellone | Report as abusive
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