The performing and non-performing loans are secured by collateral including dairy, feedlot, farmland and livestock. A First Financial Network spokeswoman tells GlobeSt.com that the majority of the loans are secured by Colorado-based assets, with the remainder coming from Texas and a small percentage from Florida.
"This offering is for qualified buyers only, mostly banks or other agricultural lenders," the spokeswoman explains. She says due diligence is currently underway, with the auction to take place on August 18. First Financial Network is acting as a receiver on behalf of the FDIC.
New Frontier Bank, once considered the largest locally owned bank in northern Colorado, was closed down in April 2009 by the state of Colorado. After the bank was shut down, the FDIC came in to run things, the first time it had taken a hands-on approach to any bank failure. The FDIC had issued a cease-and-desist order on the Bank on December 2, 2008, when it had reportedly lost $11.3 million, and had $273.7 million in unpaid loans and $43.3 million worth of foreclosed real estate on its books.
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