Buh-Buh-Bye-Bye-Bye, Affinity Bank

Monday, August 17, 2009 , , , 0 Comments



The Bank Fail Friday crew has our work cut out for us but thankfully the FDIC has set Affinity's date of execution for a day other than Friday. Gee, thanks, Sheila, we truly appreciate that.

FDIC deadline looms for Affinity Bank:

Mark your calendars, bank watchers. Aug. 20 could be a big day for Ventura-based commercial real estate lender Affinity Bank.

That’s the day the bank will have to show state and federal regulators that it’s either raised a lot of money, shed a lot of troubled loans or come up with some other way to boost its ratio of freed-up money to total loans. It’s the first deadline set out in a cease and desist order the bank received in April from the Federal Deposit Insurance Corp. and the California Department of Financial Institutions demanding that Affinity Bank increase its capital ratios.

The bank – which has nearly 70 percent of its loans tied up in commercial real estate and has not seen a profit since 2007 – needs to raise about $45 million, cut its loan portfolio by more than $500 million or find some combination to get to the ratio federal state regulators are looking for.

David Stepp, senior vice president and director of marketing for Affinity Bank, said $18.4 million in loans have been sold since March 31 and another $30 million to $32 million are slated to go as part of a branch sale in Irvine that’s pending regulatory approval. But Stepp said all options remain on the table — including a merger.

“We’re looking for a capital infusion,” Stepp told the Business Times. “We’re really not eliminating any opportunity until we’ve had a chance to study it. We’re trying to find the best way to raise the capital without negatively impacting our customers. We want to make sure we have enough capital to keep things running in the normal course of business.”

(source)

Yeah alright, Stepp, I think we're all looking for a capital infusion, buddy. Best of luck to you on that one, homeslice.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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